European stocks climbed on Thursday, September 17, as lower oil prices and a pause in the global bond selloff boosted investor confidence following the US Federal Reserve’s anticipated interest-rate hike. The Stoxx 600 rose 0.9%, reaching 642.6 points, with most regional markets posting gains.
Metal mining shares led the rally, surging 2.1%, while automakers followed with a 1.7% increase. BMW, Renault, and Volkswagen each gained around 2%.
Brent crude prices fell for the second consecutive day, remaining above $100 a barrel. Reports indicated that Saudi Arabia offered additional cargoes through Oman. Despite this, Europe’s energy sector edged up 0.1%.
The Fed’s first rate hike in three years, announced on Wednesday, reinforced expectations that major central banks are stepping up efforts to curb inflation. US Treasury yields declined on Thursday as investors assessed the decision and signals of further tightening.
“Yesterday’s move was really about restoring, I think, the Fed’s credibility,” said Luca Bindelli, head of investment strategy at Lombard Odier. “This has come with declining interest-rate volatility, which was hurting sentiment and, in particular, putting pressure on equity valuations.”
Investors also monitored the Bank of England, which held rates steady while warning that rising energy costs would worsen inflation pressures. The UK’s FTSE 100 rose 1.2%, its largest single-day gain in over two months.
Eurozone inflation was revised slightly downward to an annual 3.2% in August, from an initial estimate of 3.3%. In Sweden, Prime Minister Ulf Kristersson resigned after the center-left opposition secured a narrow parliamentary majority in Sunday’s election. The Social Democrats, led by former Prime Minister Magdalena Andersson, will lead government formation talks. Sweden’s benchmark index gained 1.1%.
Berentzen surged 19.4% after confirming negotiations with New Orleans-based Sazerac over a potential takeover. Allegro, Poland’s largest e-commerce platform, raised its 2026 forecasts and reported strong second-quarter results, sending its shares up 9.5% to the top of the Stoxx 600.
Helvetia Baloise rose 5.3% after the Swiss insurer’s first-half underlying earnings exceeded expectations. Conversely, Bilfinger plunged 21.4%, its largest single-day drop on record, after lowering its 2026 outlook for the second time. Raiffeisen Bank International fell 6% after Grizzly Research disclosed a short position on the Austrian lender.