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European shares rise as banks lead gains

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By Reuters
European shares rise as banks lead gains
FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, September 18, 2019. REUTERS/Staff/File Photo   -   Copyright  STAFF(Reuters)

(Reuters) – European shares edged higher on Thursday, helped by a rise in banks, after the U.S. Federal Reserve cut interest rates but set a higher bar for further reductions.

European banks <.SX7P> rose 1.1%, the most among the major sectors.

The pan-European STOXX 600 index <.STOXX> rose 0.2% with lender-heavy Milan <.FTMIB> and Madrid <.IBEX> outperforming.

The FTSE 100 index <.FTSE> was 0.1% lower ahead of a Bank of England monetary policy statement at 1100 GMT, where it is expected to stand pat on rates.

Wartsila <WRT1V.HE> was the worst performer on the STOXX 600 on an HSBC price target cut after the Finnish engineering group warned on 2019 profit on Wednesday.

European steel stocks ArcelorMittal <MT.AS>, Salzgitter <SZGG.DE>, Voestalpine <VOES.VI>, SSAB <SSABa.ST>, Outokumpu <OUT1V.HE> and Thyssenkrupp <TKAG.DE> declined after United States Steel’s <X.N> gloomy current-quarter earnings forecast.

(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Saumyadeb Chakrabarty)