European Stocks Rise Amid Hawkish Hold by Bank of England

European stocks saw a moderate increase on Thursday as tech earnings provided strong support, despite the Bank of England holding its key rate at 3.75% in a closely divided vote.

The Stoxx Europe 600 index rose about 0.4% mid-session, driven by gains in the banking sector after the Bank of England signaled it's not ready to declare victory on inflation. Although three policymakers voted for a quarter-point hike, this was seen as a 'hawkish hold' that could keep bond yields from falling quickly.

The decision has implications for broader markets, with 10-year German government bond yields inching up toward 3.17%. This pushed up the 'discount rate' investors use to value future profits, affecting companies' funding costs and long-term growth prospects.