European shares rise slightly ahead of central bank decisions

European shares rose slightly on Thursday thanks to gains in real estate and energy stocks. Investors are preparing for important decisions on interest rates from major central banks in Europe. The pan-European STOXX 600 index increased by 0.2%. This follows a four-day winning streak. Later today, the Bank of England is expected to keep interest rates unchanged. The decision comes as they analyze the effects of U.S. President Donald Trump's trade tariffs and a planned tax hike for employers in the UK. Similarly, Sweden’s Riksbank is also likely to maintain current rates. In contrast, the Swiss National Bank is expected to reduce rates by a quarter-percentage point. The U.S. Federal Reserve decided to keep its policy rates steady on Wednesday. Among sectors, real estate had the best performance, increasing by 0.7%. Oil and gas stocks also saw a rise of 0.6%. However, not all stocks performed well. Shares of Sodexo fell by 12.7% after the company revised its 2025 growth outlook downwards due to slower growth in North America. This decline affected the travel and leisure sector, which dropped by 0.5%. Additionally, shares of Lanxess, a chemicals company, fell by 5.3% as it warned of slow growth and potential political instability impacting its 2025 results.