Commuters crossing a junction near the Bank of England (BOE), left, in the City of London, UK, on Wednesday, May 8, 2024. Bank of England policymakers appear the most divided since they brought their hiking cycle to a close last year, illustrating the challenge that Governor Andrew Bailey faces in steering his colleagues toward possible interest-rate cuts in the coming weeks. Photographer: Hollie Adams/Bloomberg via Getty Images
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LONDON — European stocks opened slightly higher on Thursday, with U.K. investors looking ahead to the Bank of England’s policy rate decision.
The pan-European Stoxx 600 stood 0.1% higher shortly after the opening bell, with most sectors in positive territory.
U.K. traders will be focused on the Bank of England’s rate decision Thursday, although the central bank is widely expected to hold rates steady at a 16-year high of 5.25%, with the majority of economists polled by Reuters forecasting a cut in August after the country’s July 4 election.
Data released Wednesday showed U.K. inflation rose by an annual 2.0% in May, hitting the central bank’s inflation target.
Norway’s central bank and the Swiss National Bank are also set to announce monetary policy decisions on Thursday.
Norway’s Norges Bank is widely expected to keep the policy rate unchanged at 4.5%, while two-thirds of economists polled by Reuters have anticipated the SNB will decide in favor of a 25-basis-point cut to 1.25%.
Investors will be keeping an eye out on earnings from Boohoo Group and DS Smith. On the data front, flash consumer confidence figures from the euro zone for June will be released.
Overnight, Asia-Pacific markets were mostly lower on Thursday as China kept its one- and five-year loan prime rates unchanged. Meanwhile, S&P 500 futures were little changed on Wednesday as investors look for the benchmark to add to its latest record high.
On the data front, flash consumer confidence figures from the euro zone for June will be released.
