Technology, resources shares lead European stocks higher
written by Bella Palmer
The pan-European STOXX 600 ended 0.7% higher, powered by a 2.2% rise in the tech sector, recouping losses from the previous session
European stocks regained ground on Thursday, boosted by technology and resources shares, while UK's FTSE 100 dropped after the Bank of England cut interest rates but projected higher inflation following the new government's first budget.
The pan-European STOXX 600 ended 0.7% higher, powered by a 2.2% rise in the tech sector, recouping losses from the previous session. Autos also gained 2.2% after a more than 2% drop on Wednesday.
The basic resources index supported gains, adding 3.9% for its best day in six weeks following a rebound in base metals.
The FTSE 100 was the only stock index among major European benchmarks that closed in the red, down 0.3%.
The Bank of England said the government's plans were likely to add almost half a percentage point to inflation at its peak in just more than two years' time and cause it to take a year longer to return sustainably to the central bank's 2% target.
Investors will now shift their focus to the U.S. Fed's interest rate decision at 1900 GMT.
Europe's STOXX 600 added 1.9% in the previous session, tracking a surge on Wall Street after Donald Trump won the U.S. presidential election, although the index closed lower as investors assessed the likelihood of tariffs.
Among other movers on Thursday, ArcelorMittal added 6.5% after the world's second-biggest steelmaker reported third-quarter core profit above market expectations.
Italy's third-biggest lender Banco BPM jumped 9% on plans to launch a bid for full control of asset manager Anima Holding in a deal worth up to €1.6 billion ($1.7 billion). Shares of Anima jumped 11.1%.
Dutch fintech firm Adyen slid 3% after reporting third-quarter processed volume below market expectations, while British broadcaster ITV tumbled 12.9% after posting a worse than expected drop in revenue in the nine-months ended September 30.
Daimler Truck added 3.1% after the truckmaker reported a slightly better than expected third-quarter core profit.
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