European equities advanced on Thursday, with both the STOXX 50 and STOXX 600 up 0.7%, mirroring a broader global rally after the Federal Reserve raised interest rates by 25 bps, as expected, and signalled at least one more increase this year. Chair Warsh reiterated the central bank’s commitment to bringing inflation under control, helping to bolster investor confidence in the policy outlook. Bond yields declined and oil prices edged lower, offering further support to risk appetite.
At the same time, US President Trump threatened to impose tariffs on the European Union—or potentially suspend trade with the bloc altogether—if it proceeds with its plan to grant Canada its first-ever “associate member” status. Among sectors, autos outperformed, led by Stellantis (+2.5%), Renault (+2.1%) and BMW (+1.9%), while technology shares also gained, with ASML up 2%. Sodexo jumped nearly 4% after JPMorgan upgraded the stock to “overweight” from “neutral”.
