Europe open: Shares up on reports of US-UK deal; Eyes on BoE

(Sharecast News) - European stocks opened higher on Thursday amid another earnings dump as investors eyed a rate decision from the Bank of England and reports of a potential US/UK trade deal.

The pan-European Stoxx 600 was up 0.3% in early deals with Germany's DAX outperforming with a 0.75% gain and Britain's FTSE 100 up only 0.03% despite the government reportedly set to be the first nation to do a deal with the US since the start of President Trump's trade war with the rest of the planet.

Overnight the US Federal Reserve held interest rates unchanged and flagged inflationary threats if the tariffs stayed in place.

"The auto industry will be paying particular attention, given the current 25% auto tariff is a tough pill to swallow. Aside from trade talks, it's central bank decisions that are dominating the newsreel this week," said Hargreaves Lansdown analyst Matt Britzman.

"While the US Fed held things steady, UK rates are expected to see some action, as the combination of a weaker growth outlook and better than expected inflation offers enough wiggle room to cut."

It wasn't a huge surprise to see US rates unchanged, but it will come as a blow to President Trump, who has been pushing hard for the Fed to abandon its independence and deliver lower rates for Americans."

"For markets, a stable and independent Fed is a positive, and comments around the risks of both higher inflation and unemployment didn't do much to upset the apple cart."

In equity news, shares in ArgenX slumped after first quarter results, while British Gas owner Centrica also fell sharply on a trading update.

Spanish lender Banco Sabadell jumped after first-quarter profit surged beat expectations.

Anheuser-Busch InBev rose after the brewer's first-quarter profit growth came in at more than double analyst estimates.

Reporting by Frank Prenesti for Sharecast.com