European equities traded higher on Thursday afternoon, with the STOXX 50 up 0.8% and the STOXX 600 advancing 0.9%, recovering from a subdued start to the session. Investors weighed a fresh batch of corporate earnings alongside the European Central Bank’s latest monetary policy decision. As widely anticipated, the ECB left interest rates unchanged, noting that the full impact of the recent energy shock was still working its way through the economy, underlying inflation remained broadly stable, and wage growth had yet to show a significant response.
On the corporate front, Shell gained 2.6% after nearly doubling both earnings and profits. Adidas rose 4.2% following record profits and an upgrade to its full-year guidance. Renault jumped more than 7% after reaffirming its full-year outlook, while Volkswagen advanced 2.1%, rebounding despite posting a sharp operating loss for the quarter.
By contrast, BBVA slipped 3.3% after reporting weaker profits in its home market, and Lloyds fell 4.3% as its results fell short of investor expectations.