(Reuters) – European shares crawled higher on Thursday even as investors maintained a cautious stance ahead of the European Central Bank’s rate decision where it is likely to raise interest rates for the tenth consecutive time.
Markets are pricing in about a 65% chance of a 25-basis-point hike that takes Europe’s key interest rate to a record peak.
Analysts and investors had been leaning towards a pause in the ECB’s rate hike until Reuters reported on Tuesday that the central bank was set to raise its forecast for inflation next year to more than 3%, bolstering the argument for an increase.
The pan-European STOXX 600 inched 0.1% higher by 0712 GMT, supported by gains in healthcare and energy stocks.
Shares of Deliveroo rose 6.7% after activist-investor Sachem Capital in a report said they believe the food delivery company could become a takeover target.
THG slumped nearly 10% after the British online retailer forecast its annual revenue from continuing operations to come in flat or drop up to 5%.
A European Commission investigation into Chinese electric vehicles believed to have benefited from state subsidies will have a “negative” impact on economic and trade ties, China’s commerce ministry warned.
(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Sherry Jacob-Phillips)
