(Bloomberg) -- European stocks hit a new high on Thursday, while the UK’s benchmark index gained as the Bank of England’s latest policy decision drove wagers on interest-rate cuts. 

The export-heavy FTSE 100 was up 0.3% by the close, as the BOE edged closer to cutting rates from a 16-year high after a second policymaker voted for lower borrowing costs.

“If UK inflation continues to trend downward, optimism of a rate cut over the summer will grow,” said Tom Hopkins, senior portfolio manager at BRI Wealth Management.

The Stoxx 600 Index gained for a fifth day to close 0.2% higher, with miners outperforming, while autos as well as travel and leisure stocks lagged the most. Markets in Denmark, Finland, Norway, Sweden and Switzerland were closed for a holiday.

Banco de Sabadell SA gained after Banco Bilbao Vizcaya Argentaria SA commenced a hostile bid for the lender, days after an earlier approach was rejected by the smaller rival’s board. BBVA’s shares fell 6%.

Read more: Europe’s Profit Engine Revs Up With Recession in the Rear-View

Telefonica SA was muted after it reported first-quarter profit that matched analysts’ estimates and said it was on track to meet its guidance this year. Argenx SE declined, despite reporting Vyvgart sales for the first quarter that beat the average analyst estimate.

Europe’s benchmark index has rebounded this month on optimism around resilient global economic growth and a largely upbeat corporate earnings season. Bullish technical indicators also suggest the market can keep drifting higher in the near term in the absence of any major catalysts.

The publication of US inflation data next week will likely be the next “important data point for the market,” said Marija Veitmane, senior multi-asset strategist at State Street Global Markets.

For more on equity markets:

  • It Looks Like Nobody Wants to Be Short In Europe: Taking Stock
  • M&A Watch Europe: BBVA, Sabadell, Hipgnosis, Wood Group, Endor
  • London Makes Up Just 2% of Europe’s IPO Volume: ECM Watch
  • US Stock Futures Little Changed; CytomX, Cardlytics Fall
  • Fashion Gods Turn to Guinness: The London Rush

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--With assistance from Michael Msika.

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