European stocks traded mostly lower on Thursday, with the STOXX 50 hovering near the flat line after hitting a record high and the STOXX 600 down 0.7%. Investors weighed fresh policy decisions from the Bank of England and the US Federal Reserve, as well as news of an interim US–Iran agreement.
The Bank of England voted 7–2 to keep interest rates unchanged at 3.75%, in line with expectations. Policymakers cited uncertainty over the economic impact of the Middle East energy shock, while indicating they expect inflation to pick up as higher input costs feed through the economy. In the US, the Federal Reserve also left rates on hold on Wednesday, but new Chair Kevin Warsh signaled that a rate hike may be needed to contain inflationary pressures.
Globally, the US–Iran ceasefire drove oil prices to three-month lows, providing some relief on inflation concerns.
On the corporate front, Edenred jumped 16% on takeover speculation, while Generali gained 0.8% after UniCredit outlined plans regarding its stake. EQT slipped 0.5% after agreeing to acquire Intertek. In the technology sector, Infineon rose 3.5% and Aixtron added 1.5% on continued strength in tech names. Airbus climbed 2.3% following an analyst upgrade, whereas Tesco fell 2% after reporting slower first-quarter sales growth.
