23 February 2024, Hesse, Frankfurt/Main: The lights of Frankfurt am Main’s banking skyline glow in the last light of day. Photo: Boris Roessler/dpa (Photo by Boris Roessler/picture alliance via Getty Images)
Boris Roessler | Picture Alliance | Getty Images
European markets were higher on Thursday as the European Central Bank said it was keeping interest rates unchanged.
The pan-European Stoxx 600 was 0.52% higher at 3:00 p.m. London time, with major European bourses in positive territory.
Autos led gains, rising 1.84%, followed by media stocks which added 1.46%. Tech stocks opened higher, before retreating again and were last flat, while travel and leisure stocks shed 1%.
Shares of Volvo Cars jumped close to 9% on Thursday after the company reported a record core operating profit in the second quarter.
This comes after several days of negative investor sentiment, with the pan-European Stoxx 600 having closed lower for back-to-back sessions.
The ECB’s decision to keep rates unchanged was widely expected after it implemented a rate cut in June. The ECB Governing Council in a statement noted that domestic price pressures were “still high,” and said headline inflation would likely remain above the target rate “well into next year.”
Tech stocks had tumbled on Wednesday as investors in the U.S. rotated out of mega-cap tech stocks and the chip sector declined globally as concerns about geopolitical tensions and reports of tighter export restrictions from the U.S. emerged.
Asia-Pacific markets tumbled on the news from the chip sector overnight, with Japan’s Nikkei 225 declining more than 2%.
In the U.S., the tech-heavy Nasdaq Composite rose Thursday, rebounding from its worst session since 2022. The S&P 500 and the Dow Jones Industrial Average also climbed.
Novartis, Volvo, Ubisoft and Nokia are among the companies who reported earnings on Thursday.