European shares rise after US interest rate hike

European shares rose on Thursday, tracking Wall Street gains overnight after a widely expected hike in US interest rates, while optimism about Russia-Ukraine peace talks boosted sentiment.

The pan-European Stoxx 600 index rose 0.5% by 0900 GMT and is on track to recover all of its losses in March.

Wall Street indexes rose on Wednesday as investors digested the start of US monetary policy tightening. As expected, the Federal Reserve raised interest rates by a quarter of a point and hinted at raising the same amount at each of its meetings throughout the year.

Commodity stocks led the morning gains in Europe, as the mining sector index rose 0.7 percent.

The oil sector index rose 0.9 percent, with crude prices increasing by about 3 percent after the International Energy Agency warned of a shortage of supplies.

German ThyssenKrupp shares plunged 6.1 percent after suspending its 2021-2022 forecast for cash flow ahead of mergers and acquisitions due to the Ukraine crisis.

French Veolia rose 2.7 percent after the company said it expected to increase net profit more than 20 percent this year after completing its takeover of rival Suez.