Oil stocks lift European shares but rate-hike worries limit gains

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The pan-European STOXX 600 index rose 0.2% by 0718 GMT, with energy shares up 0.8% as crude prices climbed on tight supply. [O/R]

Overnight, minutes of the U.S. Federal Reserve’s early May policy meeting showed policymakers’ belief in the strength of the economy. However, Fed policy makers agreed to continue hiking rates by 50 basis points for the next two months to tame surging prices exacerbated by the war in Ukraine.

This came after the European Central Bank’s resolve to follow suit beginning July, and left investors worried about a hit to economic growth.

While Wall Street ended higher on Wednesday, futures signalled some choppiness for Thursday. Asian shares also stumbled. [MKTS/GLOB]

In Europe, miners, banks and technology stocks fell between 0.1% and 0.2%.

London’s FTSE 100, heavy with mining stocks, traded flat.

Some markets in Europe, including Swiss, Sweden and Finland, were closed for a local holiday.