European Shares Rise on Earnings Expectations, Monetary Policy

European stocks extended gains for the third consecutive session Thursday, July 22nd, with market sentiment boosted by signs of a strong earnings season and expectations that the European Central Bank will not deviate from its monetary easing policy.

The STOXX Europe 600 Index rose 0.5% by 07:14 GMT.

The index had closed up 1.7% yesterday to fully recover from sharp declines suffered earlier this week.

Shares of Swedish private equity firm EQT jumped 9.5%, topping the STOXX 600 index, after reporting strong earnings for the first half of the year.

Consumer goods giant Unilever’s share price fell 4% after the company cut its annual operating profit margin forecast due to higher commodity costs.

Eurozone stock index rose 0.7% ahead of the European Central Bank’s decision due today, as it is almost certain to pledge a longer stimulus period as part of its commitment to boosting inflation.