Europe open: Stoxx hits record on dovish Fed comments

European stocks hit fresh highs on Thursday as investors cheered dovish comments from US central bankers overnight and awaited a decision on interest rates from the Bank of England among others.

The pan-European Stoxx 600 was up 0.94% at 509.96 in early deals, setting a new record for the benchmark regional index. All major bourses were higher.

In the US, the Federal Reserve held rates steady and reiterated expectations for three cuts this year in a more positive outlook despite recent hotter-than-expected inflation data.

Investors will also be eyeing policy decisions from the Norges Bank and the Swiss National Bank.

"The status quo has reassured investors that cuts will arrive in the summer, although more patience is needed. Bank of England policymakers are highly unlikely to waver from their stance and are likely to continue to stress that vigilance is still needed while they spy the prospect for rate cuts on the horizon," said Hargreaves Lansdown analyst Susannah Streeter.

"However, there may well be more dissenters around the table, arguing for earlier cuts, given the super-stagnant nature of the economy and the worry that inflation may end up undershooting the target not just briefly but for a more sustained period."

In equity news, shares in British Airways owner IAG gained on an upgrade from RBC raises to 'outperform' from 'sector perform' and raised the price target to £2.20 from £200.

Reporting by Frank Prenesti for Sharecast.com