European stocks rise after Fed hike as oil slips, yields stabilise

Bayerische Motoren Werke Aktiengesellschaft

17/09/2026 17:41

Bilfinger falls after lowering 2026 outlook 
Helvetia Baloise edges up on better-than-expected H1 results
Bank of England shifts tone toward rate hikes after Thursday's hold
Updates to market close
By Sudeshna Ghoshal and Ragini Mathur
Sept 17 (Reuters) - European shares rose on Thursday as lower oil prices and a pause in the global bond selloff lifted risk appetite after the US Federal Reserve delivered its widely expected interest-rate hike.
The pan-European STOXX 600 .STOXX gained 0.9% to 642.6 points, with most regional markets advancing.
Metal mining shares .SXPP led the gains, jumping 2.1%.  
Automakers .SXAP rose 1.7%, led by gains of around 2% for BMW BMWG.DE, Renault RENA.PA and Volkswagen VOWG_p.DE.
Brent crude extended losses for a second day after reports that Saudi Arabia was offering additional cargoes through Oman, though prices remained above $100 a barrel. Europe's energy sector .SXEP nonetheless edged up 0.1%. O/R
The Fed's first rate increase in three years on Wednesday reinforced expectations that major central banks are stepping up efforts to curb inflation. US Treasury yields fell on Thursday as investors assessed the decision and signals of further tightening ahead. US/
"Yesterday's move was really about restoring, I think, Fed's credibility," Luca Bindelli, head of investment strategy at Lombard Odier, said.
"This has come with declining interest-rate volatility, which was hurting sentiment and, in particular, putting pressure on equity valuations." 
Investors also focused on the Bank of England, which held rates steady while warning that soaring energy costs would intensify inflation pressures. 
The UK's blue-chip FTSE 100 .FTSE climbed 1.2%, marking its biggest one-day gain in over two months. 
Euro zone inflation was revised slightly lower to an annual 3.2% in August, from a preliminary estimate of 3.3%.

        In Sweden, Prime Minister Ulf Kristersson said he would resign after the centre-left opposition won a narrow parliamentary majority in Sunday's election. 
The Social Democrats, led by former Prime Minister Magdalena Andersson, are set to lead talks on forming the next government. Sweden's benchmark index .OMXSPI rose 1.1%.
Among other stocks, Berentzen BEZ.DE jumped 19.4% after the German spirits manufacturer confirmed its negotiations regarding a potential takeover bid from New Orleans-based alcohol producer Sazerac. 
Poland's biggest e-commerce platform Allegro ALEP.WA raised its 2026 forecasts while confirming second-quarter results exceeded guidance, sending its shares to the top of the STOXX 600 leaderboard, up 9.5%.
Helvetia Baloise HBANC.S gained 5.3%, after the Swiss insurance group released results for the first half of the year, with underlying earnings coming ahead of expectations. 
Bilfinger GBFG.DE posted its biggest one-day drop on record, down 21.4%, after the German industrial services group lowered its 2026 outlook for the second time.
     Raiffeisen Bank International RBIV.VI fell 6% after Grizzly Research disclosed a short position on the Austrian lender. 

 (Reporting by Sudeshna Ghoshal in Bengaluru; Editing by Janane Venkatraman, Sherry Jacob-Phillips and Elaine Hardcastle)
 ((Sudeshna.Ghoshal@thomsonreuters.com;))