FX.co ★ European Shares Mixed Ahead Of BoE Rate Decision

European stocks showed mixed performance on Thursday, as investors grappled with uncertainty over potential Fed rate cuts and ongoing Israeli military activities in Rafah. Market participants also eagerly anticipated the results of a policy meeting by the Bank of England (BoE), set for later in the day.

The central bank is expected to keep its policy rate stable for the sixth consecutive meeting. In this setting, the attention will most likely be on the Monetary Policy Committee's vote split, the outlook for inflation, and remarks from Governor Andrew Bailey.

The Pan-European STOXX 600 experienced a slight decrease, settling at 515.35 following a 0.3 percent increase on Wednesday. Meanwhile, Germany’s DAX rose by 0.3 percent, while France's CAC 40 dropped by 0.1 percent. The UK's FTSE 100 remained largely stable.

In business news, shares in Spanish bank Sabadell soared by 3 percent after its competitor, BBVA, proposed a 12.23 billion-euro ($13.11 billion) hostile takeover to its shareholders, causing BBVA shares to drop by 6 percent.

Italian financial services firm Nexi saw its shares surge by 6 percent after it posted first-quarter results that exceeded expectations, coupled with the unveiling of a share buyback program.

Shares in oil and gas companies also increased as crude price gains were boosted by optimistic trade data from China. BP Plc's shares rose by 0.8 percent, while Shell saw a half-percent increase.

John Wood Group, an oil services company, saw its shares increase by roughly 1 percent following the confirmation of its guidance for FY24 and FY25.

Despite experiencing a decrease in first-quarter revenues, ITV saw its shares increase by 1.8 percent. BAE Systems, a multinational defense, security, and aerospace company, saw a 0.7 percent rise in its shares after it confirmed its FY24 outlook, underpinned by a strong performance earlier this year.

Despite robust Chinese imports and exports in April, manufacturers of China-related luxury goods in Paris performed poorly. LVMH, Kering, and Hermès all experienced approximate 1 percent decreases.