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European Shares Rise As Fed Turns Dovish


European stocks rose on Thursday after the U.S. Federal Reserve shifted towards a more dovish stance and media reports quoted EU officials as saying that the European Commission was unlikely to recommend further steps next week in disciplinary procedures over Italy's rising debt.

The Bank of England's monetary policy decision is due at 7:00 am ET. The central bank is expected to leave rates unchanged at 0.75 percent and the asset purchase target at GBP 435 billion.

Earlier in the day, the Bank of Japan kept its monetary policy steady, as widely expected, but hinted at sustained support for easy monetary policy amid increased global risks.

Norway's central bank raised its key interest rate, as it guided earlier, and signaled that more hikes are likely this year, citing stronger-than-expected growth and inflation hovering near target.

In economic releases, investors shrugged off a government report showing that U.K. retail sales declined for the second straight month in May.

The pan European Stoxx 600 was up 0.7 percent at 387.55 after ending largely unchanged in the previous session.

The German DAX was up 0.9 percent, France's CAC 40 index was rising 0.8 percent and the U.K.'s FTSE 100 was gaining 0.4 percent.

Miners Anglo American, BHP and Glencore rose 1-2 percent after London copper prices climbed to a more than three-week high.

Banks were moving lower as Euro zone government bond yields opened lower across the board on expectations of lower interest rates. Lloyds Bank, Deutsche Bank, BNP Paribas and Credit Agricole dropped 1-2 percent.

German software firm SAP jumped almost 2 percent after arch-rival Oracle returned to sales growth.

Delivery Hero shares soared 9 percent after the online food delivery group raised its annual guidance for a second time in two months.

N Brown Group soared 7.5 percent in London. After delivering a solid trading performance in the first quarter, the online retailer affirmed its fiscal 2020 expectations.

HomeServe, the home repairs and improvements business, rose over 1 percent after it set out several targets to accelerate growth.

Shares of Dixons Carphone slumped more than 13 percent. The consumer electrical and mobile retailer warned on fiscal 2020 headline profit after reporting a loss in its fiscal 2019.

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