Europe open: Shares up as investors eye ECB rate decision

European shares opened slightly higher on Thursday as investors awaited the latest rate decision from the European Central Bank and digested Wednesday's US inflation reading.

The pan-European Stoxx 600 index was up 0.06% at the start of the session, with regional bourses mixed.

"There’s some caution in the air for European markets as investors settle in to hear the ECB’s decision on rates off the back of recent reports that economic growth will be slower than expected," said Matt Britzman, equity analyst at Hargreaves Lansdown.

"Expectations have been all over the place, with hopes that a pause might be on the cards reversing in recent days – markets are now pricing in a 63% chance of a 25-point hike."

The US Consumer Price Index in August rose by 3.7% on an annualised basis, against estimates of 3.6% and by 0.6% on a monthly basis, in line with expectations.

However, core number inflation, which strips out volatile energy and food prices, rose 4.3% on an annual basis and by 0.3% monthly - both in line with expectations.

In equity news, online beauty product platform THG fell, despite holding guidance and posting a rise in first-half core earnings.

Reporting by Frank Prenesti for Sharecast.com