European shares rise, supported by strong earnings results

European shares rose on Thursday following strong results for several companies, while the focus is on the Bank of England, which is expected to raise interest rates by the most since 1995.

The pan-European Stoxx 600 index rose 0.1 percent, following the path of Asian stocks, which rose 0.4 percent, and in the wake of a strong rise for Wall Street in the evening after strong economic data and positive expectations for companies.

Credit Agricole rose 2 percent, joining peers BNP Paribas and Societe Generale in posting better-than-expected quarterly earnings results amid record activity at its investment banking unit.

Lufthansa shares rose 5.2 percent after the company returned to post an operating profit in the year’s second quarter, supported by increased demand for air cargo flights.

But the German company warned that it will provide only about 80 percent of passenger capacity compared to “pre-crisis” levels in the third quarter of the year, which is less than planned, amid a labour shortage at airports and airlines.

The Bank of England is expected to raise lending costs by 50 basis points to 1.75 percent, according to a Reuters poll, as the bank struggles to control inflation that has reached a four-decade high.