European stocks advance ahead of ECB rate decision

European stocks rose on Thursday, even as investors maintained their caution ahead of the European Central Bank’s decision on interest rates, as it is likely to raise them for the tenth time in a row.

Markets expect approximately 65% of interest rates to rise by 25 basis points, which will raise the main interest rate in Europe to a record level.

Analysts and investors were expecting the European Central Bank to stop raising interest rates until Reuters reported on Tuesday that the bank was moving to raise its inflation forecast for next year to more than three percent, which reinforces the need for monetary tightening.

The European STOXX 600 index rose 0.1% by 0712 GMT, supported by gains in health care and energy stocks.

Deliveroo shares jumped 6.7% after Sachem Capital Investment Company said in a report that it believes the food delivery company could become a takeover target.

THG shares fell nearly ten percent after the British online retailer expected that its annual revenues from continuing operations would remain unchanged or decrease by up to five percent.

While the Chinese Ministry of Commerce warned that the investigation conducted by the European Commission into Chinese electric cars that are believed to have benefited from government support will have a “negative” impact on economic and trade relations.