European shares edge higher as traders await ECB decision

European stock markets experienced a slight rebound on Thursday, following their most significant decline in two months. Traders were awaiting a decision from the European Central Bank (ECB) regarding an interest rate hike, as well as remarks from its president, Christine Lagarde, about oil prices and their influence on inflation. The pan-European STOXX 600 index climbed 0.1% to 641.23 points by 0708 GMT. Germany's DAX index remained unchanged, while London's FTSE edged up by 0.1% and France's CAC 40 rose 0.3%.

Earlier in the week, European stocks plummeted by 1.4% after Brent crude oil prices surged above $100 per barrel for the first time since July, heightening inflation concerns and reinforcing the belief that central banks might need to maintain restrictive monetary policies for an extended period. The Brent crude price stayed above $100 per barrel on Thursday following a series of attacks on shipping by Iran and the United States, which have been ongoing for six months.

The European Central Bank is anticipated to raise interest rates by 25 basis points later in the day, marking the beginning of a hectic period for central banks worldwide. The US Federal Reserve and the Bank of Japan are both set to announce their policy decisions in the coming week.

Among individual stocks, Associated British Foods reported that Primark's like-for-like sales are projected to decline by 3% in its fourth-quarter period, ending on September 12. As a result, AB Foods' shares dropped by 8.6%.