European stocks rise after Fed hike as oil slips, yields stabilise

EUROPEAN shares rose on Thursday (Sep 17) as lower oil prices and a pause in the global bond selloff lifted risk appetite after the US Federal Reserve delivered its widely expected interest-rate hike.

The pan-European Stoxx 600 gained 0.9 per cent to 642.6 points, with most regional markets advancing.

Metal mining shares led the gains, jumping 2.1 per cent.

Automakers rose 1.7 per cent, led by gains of around 2 per cent for BMW, Renault and Volkswagen.

Brent crude extended losses for a second day after reports that Saudi Arabia was offering additional cargoes through Oman, though prices remained above US$100 a barrel. Europe’s energy sector nonetheless edged up 0.1 per cent.

The Fed’s first rate increase in three years on Wednesday reinforced expectations that major central banks are stepping up efforts to curb inflation. US Treasury yields fell on Thursday as investors assessed the decision and signals of further tightening ahead.

“Yesterday’s move was really about restoring, I think, Fed’s credibility,” Luca Bindelli, head of investment strategy at Lombard Odier, said.

“This has come with declining interest-rate volatility, which was hurting sentiment and, in particular, putting pressure on equity valuations.”

Investors also focused on the Bank of England, which held rates steady while warning that soaring energy costs would intensify inflation pressures.

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The UK’s blue-chip FTSE 100 climbed 1.2 per cent, marking its biggest one-day gain in over two months.

Euro zone inflation was revised slightly lower to an annual 3.2 per cent in August, from a preliminary estimate of 3.3 per cent.

In Sweden, Prime Minister Ulf Kristersson said he would resign after the centre-left opposition won a narrow parliamentary majority in Sunday’s election.

The Social Democrats, led by former Prime Minister Magdalena Andersson, are set to lead talks on forming the next government. Sweden’s benchmark index rose 1.1 per cent.

Among other stocks, Berentzen jumped 19.4 per cent after the German spirits manufacturer confirmed its negotiations regarding a potential takeover bid from New Orleans-based alcohol producer Sazerac.

Poland’s biggest e-commerce platform Allegro raised its 2026 forecasts while confirming second-quarter results exceeded guidance, sending its shares to the top of the Stoxx 600 leaderboard, up 9.5 per cent.

Helvetia Baloise gained 5.3 per cent, after the Swiss insurance group released results for the first half of the year, with underlying earnings coming ahead of expectations.

Bilfinger posted its biggest one-day drop on record, down 21.4 per cent, after the German industrial services group lowered its 2026 outlook for the second time.

Raiffeisen Bank International fell 6 per cent after Grizzly Research disclosed a short position on the Austrian lender. REUTERS