Europe open: Shares shrug off hawkish banks; Travis Perkins slumps

European shares started Friday in the green, ignoring continuing hawkish noise from central banks around the world and took their cue from strong sessions in the US and Asia overnight.

The pan-regional Stoxx 600 index was up 0.2% in early trade, with all major continental bourses higher. America’s Federal Reserve paused rates, but indicated at least two more rises were on the way, while the European Central Bank lifted its benchmark for the eighth successive time and warned that inflation was still a major problem.

“US markets continue to push higher, the bulls were treated to economic data that suggests inflation is coming down and the economy is still in decent shape - pinning hopes on the idea that the Fed’s hawkish tone earlier in the week was somewhat overkill,” said Hargreaves Lansdown analyst Matt Britzman.

“The ECB kept things steady … despite the Eurozone entering a recession early in the year. The central bank also issued somewhat hawkish forecasts, revising inflation expectations and growth projections down. Sticky avenues like the labour market and wages are now playing a significant role in inflation - further rate hikes are likely as the work looks far from over.”

In equity news, shares in Travis Perkins slumped by 8% as the building products supplier issued a profits warning. The news hit rivals Grafton Group and Howden Joinery, while housebuilders also fell, with Barratt and Vistry both lower.

Reporting by Frank Prenesti for Sharecast.com