European Markets Rally Ahead of Anticipated ECB Rate Cut
European stocks rallied Thursday as investors in the region await the latest monetary policy decision from the European Central Bank.
The pan-European Stoxx 600 was up 1.23% by 8:35 a.m. London time, with all sectors and major bourses trading in the green. Tech and mining stocks jumped 2.5% and 2.05%, respectively.
Shares of Swiss pharmaceuticals firm Roche fell 4.5% after it said Wednesday that positive results released in July from an early-stage trial of its experimental weight-loss pill were based on just six patients. Novo Nordisk shares were on course for their best day in a month, climbing 3.29%, on news that its new experimental anti-obesity pill could be more effective than its existing Wegovy injection.
The European Central Bank (ECB) is expected to slash rates again by 25 basis points on Thursday, a move that would mark the first cut since June, when it described the potential for a September reduction as "wide open."
The ECB's key interest rate ââ-š¬Ã¢â‚¬ which helps to price all sorts of loans and mortgages across the bloc ââ-š¬Ã¢â‚¬ is currently at 3.75% after years of aggressive hikes.
The ECB's meeting comes just days ahead of the U.S. Federal Reserve's Sept. 17-18 meeting, at which it's expected to begin its own rate-cutting cycle.
Source : CNBC
