Europe open: Shares up as investors mull Fed, eye BoE rate call

The pan-regional Stoxx 600 index was ahead by 0.18% to 556 points in early trade. Germany’s DAX, which snapped a winning run on Wednesday, was down 0.08%.

In the US, the Fed kept interest rates unchanged at 4.25-4.50% and indicated two cuts were still on the cards later this year although this was tempered by concerns around potential inflation pressure cause by US President Donald Trump’s erratic trade policy.

Fed chair Jerome Powell said tariffs were likely to slow growth and cut forecasts to 1.7% this year, down from prior estimates of 2.1%, reflecting a rise in goods prices.

"Clearly some of it, a good part of it, is coming from tariffs," he said on Wednesday. “Progress is probably delayed for the time being," he added.

Elsewhere, the Bank of England is widely expected to hold rates steady despite recent data showing a weak economy. Swiss policy makers could cut after inflation rate fell to 0.3% last month while the Riksbank is forecast to stand pat on its key rate.

In equity news, German shipping giant Hapag-Lloyd fell after reporting a 19% slump in annual group profit.

French food services company Sodexo fell after cutting growth forecasts on the back of slower growth in the North America.

Reporting by Frank Prenesti for Sharecast.com