Europe close: Stocks grind higher as trade headlines improve

(Sharecast News) - European stocks extended gains on Thursday amid another earnings dump as the Bank of England cut interest rates and after US President Donald Trump hailed a "deal" with the UK.

"Over the past 24 hours both the Fed and the BoE have warned that the outlook for their respective economies is worsening, though the former seems in no hurry to cut rates while the latter's divided policy committee indicates that rate cuts may continue at a slower than expected pace," IG chief market analyst Chris Beauchamp said of the price action.

"Despite this, stock markets around the globe continue to edge higher, though in a far more measured pace than was the case in April. Risk appetite remains fragile, since investors remain on watch for signs that a recession is beginning to appear in the data."

The pan-European Stoxx 600 was up 0.4% at 535.63 with Italy's FTSE Mib outperforming with a gain of 1.71% to 38,974.30.

Germany's DAX gained 1.02% to 23,353.69 and France's Cac-40 0.89% to 7,694.44.

As an aside, central banks in Norway and Sweden left their rates on hold.

Overnight, the US Federal Reserve had also left its benchmark unchanged and flagged inflationary threats if the tariffs stayed in place.

Critically thus, just after the European market close Donald Trump sounded an optimistic note on the US-China negotiations scheduled for the weekend.

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 4% after first-quarter profit surged beat expectations.

Anheuser-Busch InBev rose 3% after the brewer's first-quarter profit growth came in at more than double analyst estimates.