July 28 (Reuters) – European shares hit a seven-week high on Thursday as some concerns about the pace of future U.S. interest rate hikes dissipated, while a string of strong results, including from Shell, bolstered stock purchases.
The Federal Reserve raised its key interest rate by 75 basis points, as expected, and reiterated that controlling inflation is a priority, but dropped indications on the size of the next rate hike, saying that “ in a while’ would be advisable to reduce the rate of monetary tightening.
The pan-European STOXX 600 index rose 0.5%. This year has been overshadowed by fears that aggressive attempts by central banks to control rising inflation could push economies into recession.
In one of Europe’s busiest earnings days, Milan’s main stock index rose 1.0%, with carmaker Stellantis climbing 3.7%, while chipmaker STMicroelectronics rose 2.7% . % by increasing the revenue forecast.
The biggest boost to the STOXX 600 came from Schneider Electric, which rose 4.6 percent on an upbeat outlook, while oil major Shell rose 0.9 percent after earlier posting a record quarterly profit.
Meanwhile, Spain’s IBEX fell as the eurozone’s second-biggest bank, Santander, fell as it missed earnings forecasts.
(Reporting by Susan Mathew in Bengaluru)