European shares hit fresh one-year peak ahead of ECB decision

European stocks hit a one-year high on Thursday as worries about a spike in inflation eased, while investors awaited the European Central Bank’s comments on a recent rise in bond yields. The pan-European STOXX 600 index rose 0.3% by 0809 GMT, up for a fourth straight session as Wall Street stocks rallied overnight on tame inflation data and as U.S. Congress approved one of the largest economic stimulus measures in history.

Mining, retail and technology stocks were among the top gainers in Europe, rising between 1% and 1.7%. The ECB policy decision is due at 1245 GMT where policymakers will be keen to calm markets by signalling faster money printing to keep a lid on borrowing costs and recommit to rock-bottom rates until well into the recovery.

Euro zone stocks gained 0.5% to hit their highest level in over 13 years. Rolls-Royce inched up 3.1% as the British engine-maker stuck to its forecast to burn through less cash this year after posting a worse-than-expected 2020 loss. German fashion house Hugo Boss AG fell 4.2% after saying it expects coronavirus restrictions to keep weighing on its business in the first quarter.

European shares hit fresh one-year peak ahead of ECB decision, Reuters, Mar 11