European shares rise on Fed relief and encouraging earnings

(Reuters) – European shares rose on Thursday, following the lead of Wall Street overnight, after the Federal Reserve raised interest rates, as expected, but cooled aggressive bets on tightening, with expectations raised by a series of positive results.

At 0709 GMT, the pan-European STOXX 600 index was up 1.8%, reversing much of its losses posted so far this week.

Global stock markets jumped after Fed Chairman Jerome Powell explicitly ruled out a 75 basis point hike in interest rates at an upcoming meeting, after applying a 50 basis point hike, as expected.

Battered tech stocks rose 3.2%, the biggest gain among European sectors, followed by automakers and industrials.

Airbus advanced 7.1% after posting a better-than-expected first-quarter profit and after the planemaker confirmed plans to increase production of narrow-body jets by 50%.

Oil giant Shell climbed 2.9% after posting record first-quarter profit of $9.13 billion, boosted by rising oil and gas prices and good results from its trading division.

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BMW gained 2.9% as quarterly profit rose, helped by a revaluation of the German automaker’s stake in its Chinese joint venture and strong prices.

(Reporting by Sruthi Shankar in Bangalore; edited in Spanish by Benjamín Mejías Valencia)

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