European Stocks Rebound Amid Awaited ECB Rate Decision

European stocks regained some ground on Thursday after suffering their largest one-day decline in two months. The pan-European STOXX 600 index rose 0.1% to 641.23 points, while Germany's DAX was flat and London's FTSE 100 gained 0.1%. France's CAC 40 advanced 0.3%, bucking the trend.

The surge in Brent crude prices above $100 a barrel for the first time since July has heightened concerns over inflation and strengthened expectations of prolonged restrictive monetary policy from central banks. The uncertainty surrounding energy supplies and inflation weighed on investors' sentiment, with South Korean stocks falling 1% earlier this week due to Middle East tensions.

The European Central Bank (ECB) is widely expected to raise its benchmark interest rate by 25 basis points later on Thursday. Investors will closely monitor ECB President Christine Lagarde's assessment of the inflation outlook, particularly the potential impact of higher energy prices. Reuters reported that investors will be scrutinizing her comments for clues on how long central banks may need to maintain restrictive monetary policy.