LONDON, Aug 4 — European shares rose today following strong results from a slew of companies, with focus squarely on Britain’s central bank that is expected to lift interest rates by the most since 1995.The Bank of England is expected to lift borrowing costs by a bigger 50 basis points to 1.75 per cent, according to a Reuters poll, as it battles inflation running at a four-decade high.
“Because the stock market was so beat up going into the earnings season, there’s been a degree of relief that earnings have been bad, but not awful.” British retailer Next climbed 3 per cent on raising its full-year sales and profit forecasts. The retail sector jumped 2.7 per cent, boosting the European benchmark index.
European banks advanced 0.3 per cent, but gains were capped by a 2.8 per cent drop in the Netherlands’ ING Groep NV even as it posted a better-than-expected quarterly pre-tax profit. Lufthansa rose 4.8 per cent as it said it expects a return to group operating profit for the full year.