Europe open: Stocks edge ahead as RBA rate hike spooks investors

European shares edged ahead at the open after the Reserve Bank of Australia unexpectedly hiked rates ahead of a week of central bank policy decisions and as JPMorgan agreed to buy First Republic Bank assets in a bid to boost confidence in the banking sector.

The pan-regional Stoxx 600 index was up 0.09% in early deals, with major regional bourses all higher. Germany’s DAX outperformed with a 0.43% rise despite Europe’s biggest economy reporting a surprise 2.4% fall in retail sales in March.

Eyes will turn to the US Federal Reserve on Wednesday, where a 25 basis points rise is expected, and a policy decision from the European Central Bank on Thursday.

Corporate earnings continued aplenty, with HSBC shares up as Europe's largest bank reinstated its dividend after beating first-quarter profit expectations and also announced a new cycle of share buybacks for up to $2bn.

BP shares fell after the UK oil giant posted a $5bn profit in the first quarter but cut back its share buyback programme.

Logitech shares gained after its results were well received, but AMS-Osram stock fell as quarterly earnings disappointed.

Electrolux shares topped the risers after reports of an approach from China's Midea Group for a potential acquisition of the Swedish brand.

Reporting by Frank Prenesti for Sharecast.com