European shares subdued on Fed rate-hike bets

European shares were subdued at the open on Thursday, with the STOXX 600 index edging 0.15% lower, as investors weighed the likelihood of a Federal Reserve rate hike against easing oil prices.

​European shares were subdued at the open on Thursday, as investors bet the Federal Reserve's next move would ‌be a rate hike following hawkish projections from policymakers, although easing oil prices helped temper inflation concerns.

The pan-European STOXX 600 index edged 0.15% lower to 638.35 points by 0812 ‌GMT. The Fed held rates steady on Wednesday, but persistent inflation concerns led nine ‌policymakers to project one rate hike this year. Traders see a 49.5% chance of a September increase and expect rates to remain unchanged thereafter through year-end, per CME Group's FedWatch tool. Oil prices extended ⁠losses on ​Thursday, with Brent ⁠Crude trading near $77 a barrel, after the U.S. and Iran signed an interim agreement to end the ⁠war, reopen the Strait of Hormuz and waive U.S. sanctions on Tehran's oil. Energy price-sensitive airlines ​Lufthansa and Air France rose 0.9% and 2.7%, respectively.

Tech stocks gained 0.6%, ⁠with chipmakers Infineon and Aixtron gaining more than 4% tracking a rally in Asian stocks. Generali rose 2.6% after ⁠a ​report that UniCredit is seeking to double its stake in the lender through Delfin, the Del Vecchio family holding company. UniCredit shares were up 0.3%. UK's biggest ⁠food retailer, Tesco, slipped 3.3% after reporting a slowdown in first-quarter sales growth on ⁠impact from the Middle ⁠East conflict. Edenred jumped 13.9% after a media report said Britain's BC Partners is weighing a takeover of the French voucher company.