European Shares Bounce Back Ahead of ECB Rate Decision

European shares bounced back on Thursday after experiencing their biggest one-day decline in two months. Investors are awaiting the European Central Bank's decision to raise interest rates, which is widely expected to happen later that day.

The pan-European STOXX 600 index rose by 0.1% to 641.23 points as of 0708 GMT. Germany's DAX was largely unchanged, while London's FTSE 100 gained 0.1% and France's CAC 40 advanced 0.3%. The surge in oil prices above $100 a barrel has raised concerns over inflation, leading to expectations that central banks will maintain restrictive monetary policy for longer.

Brent crude remained above the $100-a-barrel threshold due to ongoing tensions between Iran and the United States. These tensions have added to concerns over energy supplies and inflation.