European shares inch up ahead of ECB as earnings remain in focus

European Shares Edge Higher Before ECB Meeting as Earnings Remain in Focus

Market Overview and Key Drivers

Oct 29 (Reuters) - European shares inched up on Thursday ahead of the European Central Bank's policy meeting, while investors assessed a fresh batch of upbeat earnings reports.

The pan-European STOXX 600 index was up 0.11% at 644.80 points by 0806 GMT.

ECB Policy Meeting and Economic Outlook

The ECB is widely expected to keep interest rates steady at 2.5% but the spotlight will be on President Christine Lagarde's comments on the French bond crisis and Lagarde's own future.

Interest Rate Expectations

Corporate results, which have been the major driver of market sentiment recently, also remained in focus.

Corporate Earnings in Focus

Shell's Strong Performance

Shell announced above-expectation net profit of $10.81 billion in the third quarter, its highest since 2022, and boosted its buybacks, sending the shares of the oil major 2.6% higher.

Energy Sector Reaction

The energy sector climbed 1%, while London's FTSE 100 rose 0.3%.

Airbus and Technology Sector Movements

Airbus shares added 3.2% after maintaining full-year forecasts and production plans and reporting mixed third-quarter earnings.

Technology Sector Weakness

The technology sector dropped 0.7%, mirroring global weakness after investors digested earnings from Alphabet, whose shares slumped 10.8% in US premarket trading following a revenue miss and increasing cash burn to fund AI infrastructure.

(Reporting by Avinash P in Bengaluru; Editing by Mrigank Dhaniwala)