30.04.202613:35:53UTC+00European Stocks Rise as ECB, BoE Hold Rates

European equities rebounded on Thursday, with the STOXX 50 up 0.6% and the STOXX 600 advancing 1%, as the ECB and Bank of England left interest rates unchanged and oil prices retreated from four-year highs. The ECB kept its options open for upcoming meetings, highlighting elevated inflation and downside risks to growth, with President Christine Lagarde noting that a rate hike had been actively discussed. The Bank of England also held rates steady, while Governor Andrew Bailey warned that a “forceful” policy response could be required if the economic fallout from the war in Iran worsens.

In macro data, Eurozone inflation accelerated to 3% in April, the highest level in two and a half years, even as first-quarter GDP growth slowed unexpectedly. Corporate earnings produced a mixed reaction in individual stocks: Rolls-Royce jumped 9% after reaffirming its guidance, and Standard Chartered rose 3.7% on record profits. Unilever, Glencore, ArcelorMittal, and Volkswagen each gained between 1% and 1.1%.

On the downside, Stellantis tumbled 7% on weaker revenue, while French lenders came under pressure: Crédit Agricole lost 5%, BNP Paribas fell 2.6%, and Société Générale declined 4%. Universal Music Group also retreated, dropping 4.6%. For the month, the STOXX 50 was on track for a 4.6% increase, with the STOXX 600 poised for a 4.2% gain.