Shares nudge higher in Europe after Fed hikes rate

European stocks edged higher on Thursday, tracking overnight gains on Wall Street after a widely anticipated US interest rate hike, while lingering optimism about Russia-Ukraine peace talks aided sentiment further.

The pan-European Stoxx 600 index rose 0.5 per cent by 0819 GMT, on course to erase all of its losses in March.

Wall Street indexes rallied on Wednesday as investors took in stride the long expected start of a US monetary tightening. The Federal Reserve increased rates by a quarter point, as expected, and telegraphed equivalent hikes at every meeting for the remainder of this year.

Commodity stocks led the morning gains in Europe, with miners up 0.7 per cent as Shanghai copper and aluminium prices continued to benefit from hopes for more stimulus measures by the top metals consumer China.

European stocks gain amid hopes for peace talks and Chinese stimulus

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European shares gain on Ukraine hopes

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Irish funds exposed to Russia suspended as global managers freeze billions

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Oil surges after IEA warns of shortfall in supply

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Oil stocks gained 0.9 per cent as crude prices climbed about 3 per cent after the International Energy Agency (IEA) warned of shortfall in supply.

Germany’s Thyssenkrupp fell 6.1 per cent after suspending its 2021/22 forecast for free cash flow before mergers and acquisitions due to the Ukraine crisis, and said it was unclear if it would still be able to spin off its steel division.

France's Veolia rose 2.7 per cent after saying it should see its current net income grow by more than a fifth this year, after the water and waste management firm finalised the takeover of its top rival Suez. – Reuters