European shares rise as oil retreats, BoE decision in focus

Ryanair Holdings

17/09/2026 10:15

Bilfinger tanks after lowering 2026 outlook 
France's Sodexo gains after JPM upgrade
BoE expected to hold rates later in the day 
Updates throughout, adds analyst comment
By Sudeshna Ghoshal
Sept 17 (Reuters) - European shares climbed on Thursday, with risk sentiment boosted by lower oil prices and a pause in the global bond selloff after the U.S. Federal Reserve delivered a widely anticipated interest rate hike.

        The pan-European STOXX 600 .STOXX rose 0.5% to 640.21 points by 0830 GMT, with most regional bourses following suit. Germany's DAX .GDAXI also climbed 0.5%.
Travel stocks .SXTP were among the top gainers, up 0.8%, tracking a retreat in oil prices, with airline stocks Ryanair RYA.I and Lufthansa LHAG.DE up 1.1% and 1.2%, respectively. 
Automakers .SXAP climbed 0.8%, with shares of BMW BMWG.DE, Renault RENA.PA and Volkswagen VOWG_p.DE rising around 1% each. 
Crude prices extended losses for a second session following reports of Saudi Arabia offering extra crude cargoes through Oman, but Brent crude futures LCOc1 stayed above $100. O/R
Europe's energy sector .SXEP advanced 0.4%, bucking the drop in crude prices. 
"Investors are taking some comfort from slightly lower crude prices. They're looking at the prospect of the Bank of England keeping rates on hold later today," said Susannah Streeter, chief investment strategist at Wealth Club.
The Bank of England is widely expected to leave rates unchanged later in the day, with investors focused on any signals about further policy tightening.
Last week, the European Central Bank raised interest rates for a second time this year.
UK's blue-chip FTSE 100 .FTSE climbed 0.6%, underpinned by banks including HSBC HSBA.L and healthcare stocks such as AstraZeneca AZN.L.
A final reading of euro zone showed inflation rose to an annual rate of 3.2% in August, revised lower from a preliminary reading of a 3.3% rate.
Meanwhile, long-dated Treasury yields remained below the 5% mark after the U.S. Fed raised interest rates by a quarter of a percentage point, as widely expected, in its first hike since 2023. 
"Investors took some comfort from the Fed standing firm in the face of Donald Trump's noisy demands for lower rates and so it adds to the credibility of the Fed," Wealth Club's Streeter said. 
Among other individual 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. 
Shares of Sodexo EXHO.PA gained 4.4% after JP Morgan upgraded the French caterer's stock rating to "overweight" from "neutral".

        Bilfinger GBFG.DE posted its biggest intraday percentage drop on record, down 19.5%, after the German industrial services group lowered its 2026 outlook for the second time.
 Raiffeisen Bank International RBIV.VI fell 8.1% after Grizzly Research disclosed a short position on the Austrian lender. 

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