Europe open: Stocks rise as oil prices ease; Fed decision in focus

(Sharecast News) - European stocks rose in early trade on Thursday as oil prices eased back and as investors mulled a hawkish rate hike by the Federal Reserve.

At 0850 BST, the benchmark Stoxx 600 index was up 0.7%, while France's CAC 40 and Germany's DAX were 0.4% and 0.7% higher, respectively. At the same time, Brent crude was down 1.4% at $104.40 a barrel and West Texas Intermediate was 1.2% lower at $101.22.

Investors were digesting the Fed policy announcement overnight, which saw rates lifted by 25 basis points as expected to between 3.75% and 4.00%. This marked the first hike since 2023 and the decision was unanimously approved with a 12-0 vote.

Susannah Streeter, chief investment strategist at Wealth Club, said that while the hike itself was broadly expected, "the tougher tone from [chair] Kevin Warsh sent pulses racing".

"Treasury yields initially dipped after the decision, as investors took some comfort from the Fed standing firm in the face of Donald Trump's noisy demands for lower rates," she said. "But as the newish chair made clear that the fight against inflation is far from over, expectations of further tightening have strengthened. The Fed's own projections point to at least one more rate hike this year."

Looking ahead to the rest of the day, attention will turn to the Bank of England's policy announcement at midday, amid expectations it will leaves rates on hold at 3.75%.

In equity markets, French caterer Sodexo was boosted by an upgrade to 'overweight' from 'neutral' by JPMorgan, which said it sees "the set-up turning more constructive". The bank said Sodexo has started to price a turnaround and it sees scope for further upside as evidence of commercial momentum becomes more visible and delivery consistency improves.

"We see an approaching inflection, with FY 27 likely the first year to break the downtrend in new development, and the recent Meta award an important proof point, even if progress is unlikely to be linear," it said. At the same time, JPM said the stock still screens inexpensive on its numbers versus history and peers, leaving room for estimate upgrades and multiple re-rating.

On the downside, Germany's Bilfinger tumbled as it cut its 2026 outlook again.