Dec 18 (Reuters) – European shares were muted on Thursday as investors adopted a largely cautious stance ahead of a series of central bank announcements across the region and crucial U.S. inflation data.
The pan-European STOXX 600 was off 0.1% at 579.43 as of 0806 GMT. Major regional bourses were broadly higher, but Germany’s DAX slipped 0.1%.
In London, the FTSE 100 inched up 0.1% ahead of the Bank of England’s rate decision, where markets widely expect a 25-basis-point cut. Bets were amplified after Wednesday’s surprising drop in UK inflation.
The European Central Bank, Norway’s Norges Bank, and Sweden’s Riksbank are scheduled to announce their policy decisions later in the day, with all three widely expected to hold rates steady.
Market focus remains squarely on the ECB’s outlook, especially after comments from policymakers opened the door to a rate hike next year, signalling a potential deviation from the U.S. Federal Reserve.
In the market, energy shares led gains, up 0.5%, as oil prices continued to rise. BP gained marginally after it appointed Meg O’Neill, the head of Australia’s Woodside Energy, as its next CEO.
Healthcare shares slipped 0.6%, as heavyweight Novo Nordisk fell 1.4% and AstraZeneca was declined 0.5%.
The U.S. inflation report for November, which could provide clarity on the Fed’s monetary policy trajectory, will also be on watch, after employment data earlier this week failed to shift market expectations significantly.
(Reporting by Ragini Mathur; Editing by Janane Venkatraman)
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