European shares rose on the morning amid stimulus hopes from the central bank

Economy and stock exchange

European shares rose on Thursday, with expectations that the ECB will further stimulate the faltering euro zone economy, overshadowing disappointment over the collapse of Renault's merger with Fiat Chrysler.

By 0717 GMT, the Stoxx 600 European index rose 0.3 percent, with the auto sector falling 0.48 percent to limit market gains.

Fiat Chrysler shares fell 1.6 percent, pushing the main index on the Milan stock exchange after Italy's automaker abandoned a $ 35 billion offer to merge with Renault. Renault shares fell nearly 8 percent.

The European Central Bank, due to announce its interest rate decision at 1130 GMT, is expected to boost the economy and possibly pave the way for further moves later this year as trade tensions undermine the stimulus benefits it has offered. European Central Bank for years.

The banking sector index, which is very sensitive to interest rates, fell slightly as French bank Credit Agricole fell 1 percent after unveiling new higher profit targets for 2022.