European Stocks Rebound as ECB, BOE Hold Rates, Oil Falls
European stocks rallied on Thursday (April 30th) as falling oil prices helped improve risk sentiment, as markets digested the latest developments in the Iran war and awaited a series of corporate earnings reports. The pan-European Stoxx 600 index closed up 1.4%, reversing early session pressure, while major bourses traded mixed, with most sectors ending in the green.
The decline in oil provided room for an equity rally as it eased concerns about energy costs and short-term inflationary pressures, which have been a major source of volatility during the conflict. However, the dynamics of the Iran war remain a variable that is keeping investors cautious, particularly regarding its implications for energy supplies and growth prospects.
On the policy front, the European Central Bank and the Bank of England both opted to keep interest rates on hold, reflecting the central bank's dilemma amid energy risks and geopolitical uncertainty. Preliminary data shows the eurozone economy slowing, with first-quarter GDP growing by just 0.1%, while eurozone inflation rose to 3% in April from 2.6% in the 12 months to March.
Source: Newsmaker.id
