European Shares Bounce Back Amid ECB Rate Hike Expectations

European shares rebounded on Thursday after a sharp decline in the previous day. The pan-European STOXX 600 index rose by 0.1% to 641.23 points early in the session, while Germany's DAX held steady and London's FTSE gained 0.1%. France's CAC 40 saw a notable increase of 0.3%, indicating a moderate recovery from the previous day's losses.

The market is eagerly awaiting the European Central Bank's (ECB) decision on an interest rate hike, which is expected to be 25 basis points. This move will mark the start of a challenging period for global central banks, with the US Federal Reserve and the Bank of Japan set to reveal their monetary policies in the coming days.

Brent crude prices remained above $100 per barrel on Thursday due to escalating tensions between Iran and the US over maritime activities, sparking inflation concerns and implying prolonged restrictive monetary policy from central banks. This development has added to the pressure on investors, who are already bracing themselves for a potentially tough period ahead.