Europe open: Shares take a breath ahead of BoE call on rates

European stocks opened lower after hitting fresh highs on Wednesday as investors turned their attention to a rate decision from the Bank of England.

The pan-European Stoxx 600 index was down 0.14% to 515.05. Germany's DAX and the UK's FTSE 100 both continued their bullish run of recent weeks, bucking the weaker trend of the day.

"No one expects a move on rates today from the Bank’s Monetary Policy Committee but recent strength in the stock market suggests a cut around the corner," said Finalto analyst Neil Wilson.

"Signs that the labour market softening is easing may be a worry, and wages are still moving higher at a rare old clip. Messaging is likely to shift further towards a cutting bias – whether or not there is an explicit green light for August is up for debate."

In economic news, China’s exports rose 1.5% in April, while imports surged 8.4%, beating forecasts, according to data released by the customs agency on Thursday.

Economists had tipped imports to increase 4.8%. The figure also reversed a 1.9% fall in March.

In equity news, weapons maker BAE Systems held annual guidance and said global geopolitical tensions should boost orders as countries increased defence spending.

Spanish bank Sabadell jumped after rival BBVA presented a €12.23bn takeover bid directly to shareholders, even though the former's board already rejected the proposal. BBVA shares were down 5.4%.

Belgian pharmaceutical firm ARGX slumped almost 10% after reporting first-quarter earnings, while Italian payments group Nexi jumped 6% after a larger-than-forecast rise in first-quarter core profit.

BE Semiconductor Industries was higher after announcing it received order for 26 hybrid bonding systems.

Reporting by Frank Prenesti for Sharecast.com