European stocks recorded a slight increase in volatile trading on Thursday, as caution in the markets continued due to rising tensions in the Middle East, ahead of the European Central Bank's decision on interest rates later today.
The European ‘Stoxx 600’ index rose by 0.3 percent to reach 620.24 points by 07:17 GMT, according to Reuters.
This performance came amid rising oil prices to about 95 dollars a barrel, with ongoing aerial bombardments between the United States and Iran, which increased investors' fears about potential disruptions in energy supplies, in the absence of any indications of a near reopening of the Strait of Hormuz, one of the most vital corridors for transporting oil globally.
Shares of sensitive travel and leisure companies faced selling pressure due to rising energy costs, with ‘EasyJet’ shares dropping by 1.7 percent and ‘Lufthansa’ by 0.5 percent. In contrast, positive results supported the ‘Wizz Air’ stock, which rose by 4.6 percent after reporting annual profits that exceeded expectations, despite refraining from providing guidance for the 2027 financial year due to the lack of a clear outlook.
In the context of transactions, ‘Hugo Boss’ shares jumped by 6.4 percent after the British ‘Frasers’ group made a takeover offer worth two billion euros (2.31 billion dollars) for the German fashion house.
Chip manufacturers' stocks made strong gains, with ‘P.E. Semiconductor’ shares rising by 4.2 percent and ‘ASML International’ by 4.8 percent, supported by relative optimism in the semiconductor sector.
The technology sector has seen noticeable fluctuations in recent days, as the strong momentum of AI stocks halted after a wave of increases continued over the past two months.
Investor attention later today will be on the monetary policy decision of the European Central Bank, where market forecasts indicate a likely interest rate hike of 25 basis points, according to data from the London Stock Exchange Group, with significant anticipation for signals regarding the monetary policy path amid the repercussions of oil price shocks on the European economy.