European Markets Rebound Amid Interest Rate Decisions and Political Chaos

European markets rebounded on Thursday as technology and resources stocks bolstered gains. The pan-European STOXX 600 rose 0.7%, driven by tech and autos sectors, while Britain's FTSE 100 fell 0.3% following the Bank of England's rate cut and inflation forecast. Political turmoil in Germany added further market dynamics.

European stocks made a noteworthy recovery on Thursday, buoyed by positive performances in the technology and resources sectors. In contrast, the FTSE 100 dipped after the Bank of England reduced interest rates but predicted higher inflation due to the new government's fiscal policies.

The STOXX 600 index managed to climb 0.7%, with the tech sector bouncing back by 2.2% and basic resources witnessing a 3.9% rise, making it the best day in six weeks. Meanwhile, Britain's FTSE 100 suffered a 0.3% decline, impacted by the BoE's inflation outlook.

Further political developments arose in Germany as Chancellor Olaf Scholz's sacking of the finance minister led to a snap election, influencing market sentiments. Rheinmetall's shares soared 9%, reflecting optimism about increased defense spending amid potential shifts in Germany's fiscal policies.

(With inputs from agencies.)