© Reuters. FILE PHOTO: A view shows the logo of the European Central Bank (ECB) outside its headquarters in Frankfurt, Germany March 16, 2023. REUTERS/Heiko Becker//File Photo
By Shristi Achar A
(Reuters) -European shares inched higher on Thursday, supported by gains in energy stocks, while investors awaited minutes of the European Central Bank’s (ECB) latest meeting for clues on the region’s monetary policy path.
The pan-European was up 0.1% by 0958 GMT, extending gains after notching a two-month high in the previous session.
Oil and gas cushioned the benchmark index, up 0.9% following the sector’s two straight sessions of losses.
Investors will keenly watch the ECB’s release of the October policy meeting minutes for any cues on the central bank’s interest rate trajectory.
“Inflation is going down, but not as fast. So the general setting is that ECB is kind of at the mercy of economic slowdown and global policy rates,” said Marija Veitmane, a senior multi-asset strategist at State Street (NYSE:) Global Markets.
ECB officials have repeatedly tried to snuff growing bets of rate cuts amid data signalling a sustained fall in inflation and a likely recession.
ECB Governing Council member Joachim Nagel said in an interview on Der Spiegel that the goal in terms of inflation has not yet been reached.
Market participants digested the euro zone Composite Purchasing Managers’ Index, which showed business activity in the region eased in November, but suggested the bloc’s economy will contract again this quarter as consumers continue to rein in spending.
Amsterdam’s AEX was muted, following a shock election win by the far-right politician Geert Wilders in the Netherlands.
Aiding gains, Sweden’s main stock index rose 0.8% after its central bank, Riksbank, kept its policy rate on hold at 4%.
Among stocks, Endesa fell 2.6% after the Spanish utility cut its 2023 outlook for profit.
Virgin Money (LON:) UK slid 2.8% on reporting its annual profit below market estimates.
France’s LDC added 3.5% after the poultry producer posted a higher first half-year net profit and raised its annual forecast.
Analysts pointed to weaker trading volumes as U.S. markets were closed on account of Thanksgiving holiday.
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