European stocks hit a one-year high on Thursday as worries about a spike in inflation eased, while investors awaited the European Central Bank’s comments on a recent rise in bond yields.
The pan-European STOXX 600 index rose 0.3 per cent in early trading, up for a fourth straight session as Wall Street stocks rallied overnight on tame inflation data and as US Congress approved one of the largest economic stimulus measures in history.
Mining, retail and technology stocks were among the top gainers in Europe, rising between 1 per cent and 1.7 per cent.
In Dublin the Iseq was up 1.2 per cent in early trading led by heavyweight CRH, which was 1.7 per cent higher. Other movers included Flutter, up 3 per cent and Ryanair, which rose 1 per cent.
Elsewhere, the Dax was down 1.2 per cent with the CAC 40 index and FTSW 100 both flat.
The ECB policy decision is due at lunchtime where policymakers will be keen to calm markets by signalling faster money printing to keep a lid on borrowing costs and recommit to rock-bottom rates until well into the recovery.
Euro zone stocks gained 0.5 per cent to hit their highest level in over 13 years.
Rolls-Royce inched up 3.1 per cent as the British engine-maker stuck to its forecast to burn through less cash this year after posting a worse-than-expected 2020 loss.
German fashion house Hugo Boss fell 4.2 per cent after saying it expects coronavirus restrictions to keep weighing on its business in the first quarter.
- Reuters
