Stock markets in a mixed fashion as the ECB rate decision remains unclear.

European stock markets are anticipated to begin mixed on Thursday, as investors await the European Central Bank's monetary policy decision in the aftermath of the Fed’s latest rate rise.

Yesterday, the Fed raised interest rates by 25 basis points, increasing the federal funds rate range to 5%-5.25%, its largest increase since August 2007.

The Fed has hinted that it may stop its year-long tightening cycle in June as policymakers analyse inflationary pressures as well as the effects of the recent bank failures on lending conditions.

The focus now shifts to Europe, where the ECB is expected to continue to further tighten monetary policy and raise interest rates for the seventh consecutive time.

Although the extent of the rise is unknown.

Following signs that underlying inflation is stabilising and credit conditions are tightening, officials are widely expected to raise the base rate by a quarter-point to 3.25%. However, given that headline inflation remains high at 7%, a bigger hike of 50 basis points cannot be ruled out.

In other news. Volkswagen recorded a strong increase in revenue in the first quarter, but the German automaker suffered a decline in operating profit after a boost from commodities hedging in the previous year's first-quarter earnings.

Oil prices increased Thursday, regaining ground following a three-day drop on fears that demand in the world's main consumers would suffer as interest rate hikes stifled economic development.

Official statistics from the EIA indicated that US oil stockpiles continued to plummet last week, falling by slightly over one million barrels.

(investing.com, reuters.com)