Europe close: Stocks rebound across the Continent
European equities rebounded sharply from a sell-off during the previous session sparked by inflation fears.
The rebound came despite the release overnight of the minutes of the US central bank's last policy meeting, which showed that some rate-setters in Washington DC were indeed pondering whether or not to start discussing 'tapering' the Federal Reserve's bond purchases.
Against that backdrop, the pan-European STOXX 600 index rose 1.27% to 441.90, after falling 1.5% on Wednesday, as strong corporate earnings boosted sentiment.
Germany's Dax meanwhile put on 1.7% to 15,370.26, while the FTSE Mibtel added 0.88% to 24,702.11.
"A number of participants suggested that if the economy continued to make rapid progress toward the committee’s goals, it might be appropriate at some point in upcoming meetings to begin discussing a plan for adjusting the pace of asset purchases,” minutes from the Federal Reserve’s Open Markets Committee meeting stated.
Markets.com analyst Neil Wilson said the Fed “floated a trial balloon [...] this was the first pointer – the first signal. It was done on purpose”.
“Tentative – the question remains: when does the Fed think it's hit the landing area for the economy, and does inflation take off in the meantime?”
In equity news, shares in rail and bus ticketing company Trainline slumped more than 23%, having plunged by more than a third in early deals, on news the UK government will create a new state-owned body, Great British Railways, which will set timetables and prices, sell tickets in England and manage rail infrastructure.
French conglomerate Bouygues gained after it raised the full-year guidance for its telecoms division and reported a smaller than expected first-quarter core loss.
BT was hit by a downgrade to ‘hold’ from ‘buy’ at Berenberg.
Royal Mail reversed early losses even as it said full-year pre-tax profits rose to £726m from £180m as parcels, rather than letters, provided it with the majority of its revenue for the first time in its five-century history, but reported a slowdown in volumes during April and warned of higher costs in the current fiscal year.
EasyJet flew lower after the budget airline posted a widening of its first-half losses, in line with expectations, as it continues to take a hit from Covid-related restrictions.