By Shristi Achar A
(Reuters) -European shares rose on Thursday as gains in energy overshadowed declines in technology stocks, although major focus was on the European Central Bank’s interest rate decision, due later in the day.
The continent-wide STOXX 600 was 0.3% higher at 0838 GMT, on track to snap three consecutive sessions of losses.
Oil and gas boosted the benchmark index with a near 1% rise, tracking stronger crude prices. [O/R]
Gains were limited by a 0.4% loss in technology stocks, with the sector extending declines from Tuesday, as concerns around tougher U.S. trade rules lingered.
“There’s also this worry in Europe that the Trump administration could worsen the international trade environment and worsen the trade relationships and that is a worry that goes beyond ASML <ASML.AS> and chip stocks,” said Ipek Ozkardeskaya, Swissquote Bank’s senior analyst.
Investors also awaited the ECB’s interest rate decision, due at 1215 GMT, where the central bank is expected to keep interest rates unchanged while signalling that its next move is still set to be a cut, even if this guidance is likely to be vague and carry caveats. [0#ECBWATCH]
“We expect the ECB to set the expectations for September rate cut… We’re in a good position to do that given that the rate cut expectations for the (Federal Reserve) in September are now fully priced in,” Ozkardeskaya added.
While a raft of downbeat earnings and trade concerns has kept the benchmark index subdued for the week, expectations of easing interest rates this year have gripped the investors’ attention.
Swiss stocks lost 0.5%, led by a 5.3% fall in ABB even as the Swiss engineering group reported a slightly better-than-expected second-quarter profit, in the final set of numbers under departing Chief Executive Bjorn Rosengren.
Among other stocks, Publicis jumped 4.9%, as the French advertising group upgraded its organic growth guidance after beating expectations for the second quarter.
Essity advanced 4.1% after the Swedish hygiene products maker reported second-quarter core earnings above expectations.
Finnish telecom equipment maker Nokia shed 7.2% after reporting a 32% decline in quarterly profit.
Husqvarna slumped 13.1% to the bottom of STOXX 600 after the Swedish garden equipment and tools maker reported a 9% drop in second-quarter sales due to cautious consumer spending.
(Reporting by Shristi Achar A and Pranav Kashyap in Bengaluru; Editing by Eileen Soreng)
