Robust earnings support European shares; eyes on BoE rate decision

The Bank of England is expected to lift borrowing costs by a bigger 50 basis points to 1.75%, according to a Reuters poll, as it battles inflation running at a four-decade high.

European shares edged up on Thursday following strong results from a slew of companies, with the focus squarely on Britain's central bank that is expected to lift interest rates by the most since 1995. The pan-European STOXX 600 index gained 0.1%, taking cues from a 0.4% rise in Asian equities and a strong overnight rally on Wall Street after robust economic data and an upbeat corporate outlook.

Credit Agricole rose 2% as it joined French rivals BNP Paribas and Societe Generale in announcing a better-than-expected quarterly profit amid record activity at its investment banking division. Lufthansa rose 5.2% on a return to operating profit in the second quarter, helped by booming demand for air cargo flights.

However, the German airline warned it would offer only around 80% of "pre-crisis" passenger capacity in the third quarter, less than previously planned, amid staffing shortages at airports and airlines. The Bank of England is expected to lift borrowing costs by a bigger 50 basis points to 1.75%, according to a Reuters poll, as it battles inflation running at a four-decade high.