European bourses tracked moderately higher midday Thursday even as traders awaited clarity on the latest round of Persian Gulf hostilities, and anticipated a rate hike from the European Central Bank (ECB).
The ECB is expected to raise its key interest rate to 2.25% from 2% Thursday, the first rate increase since 2023, as the continent faces inflationary pressures from rising energy bills.
Bank, oil and tech stocks led gains on continental trading floors in midday action, while property shares lagged.
Investors also eyed Wall Street futures flashing green, and uneven closes overnight on Asian exchanges.
In economic news, the European Union must be prepared to impose new sanctions on Iran if Tehran continues its aggressive actions and contributes to the ongoing crisis in the Middle East, Reuters reported, citing Italian Prime Minister Giorgia Meloni.
The pan-continental Stoxx Europe 600 Index was up 0.8% mid-session.
The Stoxx Europe 600 Technology Index was up 0.7%, and the Stoxx 600 Banks Index gained 1.4%.
The Stoxx Europe 600 Oil and Gas Index rose 1.2%, while the Stoxx 600 Europe Food and Beverage Index inclined 0.4%.
The REITE, a European REIT index, fell 0.3%.
On the national market indexes, Germany's DAX was up 0.4%, and the FTSE 100 in London gained 0.9%. The CAC 40 in Paris was up 0.9%, and Spain's IBEX 35 lifted 1.4%.
Yields on benchmark 10-year German bonds were lower, near 3.04%.
Front-month North Sea Brent crude-oil futures were up 0.9% at $92.31 a barrel.
The Euro Stoxx 50 volatility index was down 4.2% at 20.61, but still indicating above-average volatility for European stock markets in the next 30 days, a negative signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.