Euro Stocks Muted Amid ECB Rate Hike Expectations

European stocks closed with muted movements for the fourth session in a row due to concerns over higher interest rates by the European Central Bank. The Euro STOXX 50 index rose by 0.1% to 6,413, while the STOXX 600 remained flat at 649.6.

Traders adjusted their positions to reflect expectations of multiple rate hikes by the ECB this year, as natural gas prices surged to their highest since Russia's invasion of Ukraine. This lifted inflation risks and sovereign yields.

Industrial stocks rebounded after underperforming in recent sessions, with Rheinmetall, Airbus, and Schneider gaining over 2%. In contrast, insurers continued to struggle, with Munich Re and AXA falling 2% and 1%, respectively.