Europe open: Shares rally as Fed rules out aggressive tightening; Eyes on BoE
By Frank Prenesti
Date: Thursday 05 May 2022
(Sharecast News) - European stocks rallied at the open on Thursday after the US Federal Reserve raised interest rates but ruled out more aggressive moves in the future.
The pan-European STOXX 600 index rose 1.27%, with investor sentiment also helped by another dump of corporate earnings and updates.
In the US, Wall Street closed higher after the Fed raised interest rates by 50 basis points, but the central bank's chairman Jerome Powell scotched suggestions of a 75 basis point hike in a coming meeting.
Investors were now eyeing the Bank of England for a similar move later in the day as Britons struggled with soaring prices.
In equity news, Airbus shares rose after the aircraft maker reported higher-than-expected first-quarter profit and firmed up record plans for a 50% hike in narrow-body jet output.
Oil giant Shell gained after reporting a record first-quarter profit of $9.13bn, boosted by higher oil and gas prices which have been inflated due to the Ukraine war. The company also pledged more returns to shareholders.
BMW was higher as it posted a rise in quarterly profit, lifted by a re-evaluation of its Chinese joint venture stake and strong pricing.
Shares in Hikma Pharmaceuticals fell as the company cut annual sales and margin forecasts for its second-biggest unit, due to possible delays in the launch of a generic version of a sleep disorder treatment.
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