European stocks rise ahead of the European Central Bank’s interest rate decision

European stocks rose on Thursday even as investors remained cautious ahead of the European Central Bank’s decision on interest rates, as it is likely to raise them for the tenth time in a row.

Markets expect approximately 65 percent of interest rates to rise by 25 basis points, which will raise the main interest rate in Europe to a record level.

Analysts and investors had expected the ECB to halt interest rate hikes until Reuters reported on Tuesday that the bank was moving to raise its inflation forecast for next year to more than three percent, reinforcing the need for monetary tightening.

The European STOXX 600 index rose 0.1 percent by 0712 GMT, supported by gains in health care and energy stocks.

Deliveroo shares jumped 6.7 percent after investment firm Sachem Capital said in a report that it believes the food delivery company could become a takeover target.

THG shares fell nearly 10 percent after the British online retailer expected its annual revenues from continuing operations to remain unchanged or decline by up to five percent.

Meanwhile, the Chinese Ministry of Commerce warned that the investigation conducted by the European Commission into Chinese electric cars that are believed to have benefited from government support will have a “negative” impact on economic and trade relations.