Europe open: Shares edge ahead after US rate rise, eyes on BoE
European shares edged ahead at the opening as peace talks between Ukraine and Russia appeared to be making progress, the US raised interest rates and investors waited on Britain to make a similar decision on Thursday.
The pan-European Stoxx 600 index was up 0.62% in early deals with all major regional bourses also higher. Asian shares were up again after China's promise of stimulus measures to support its economy. Hong Kong’s Hang Seng index surged 7%.
On the war front, the death toll of Ukrainian citizens continued to mount after air strikes in the besieged city of Mariupol hit a theatre where hundreds of people were believed to have been sheltering and a swimming pool where pregnant women and young children had gathered.
The US Federal Reserve increased rates by a quarter point, as expected, and indicated rises at every meeting for the remainder of this year. The Bank of England will decide on domestic rates later Thursday.
Commodities were in focus again, with the London Metal Exchange's (LME) three-month nickel contract hitting its lower trading limit of 8% when it opened on Thursday as traders sold on expectations of falling prices.
A wild spike in prices for the metal used to make stainless steel and electric vehicle batteries left traders facing billions of dollars in losses saw the LME suspending trades on Wednesday.
Oil prices were also showing volatility, whipsawing around the $100 level as supply disruption fears after Russia’s decision to wage war on Ukraine pushed Brent crude briefly to $139 a barrel.
Prices rose again overnight after the International Energy Agency said markets could lose three million barrels per day of Russian crude from April and UK Prime Minister Boris Johnson failed to persuade Saudi Arabia and the United Arab Emirates to lift production.
In equity news, shares in Germany's Thyssenkrupp fell 7.6% after the company suspended its 2021/22 forecast for free cash flow before mergers and acquisitions due to the Ukraine crisis, and said it was unclear if it would still be able to spin off its steel division.
Ocado shares fell as the online grocer said retail revenue fell in the first quarter of 2022 and warned about uncertainty caused by the rising cost of living.
Deliveroo shares were up 7.85% despite a wider annual loss as spending on marketing and technology more than offset higher revenue at the food delivery group.