European stocks post small gains ahead of key ECB policy meeting
European equity indices edged marginally higher Thursday, as investors awaited a widely-expected interest rate cut from the European Central Bank later in the session.
At 03:05 ET (07:05 GMT), the DAX index in Germany climbed 0.2%, the CAC 40 in France gained 0.2% and the FTSE 100 in the U.K. rose 0.1%.
ECB meeting looms large
The European Central Bank ends its latest policy-setting meeting later in the session, and is almost certain to cut interest rates once more - its eighth reduction in 13 months - as it seeks to prop up the struggling eurozone economy.
Inflation has eased from post-pandemic highs, with data earlier this week showing that consumer price inflation in the 20 countries sharing the euro slowed to 1.9% in May from 2.2% a month earlier, below the ECB’s 2.0% target.
However, doubts remain about what the central bank policymakers will signal going forward, meaning the post-decision comments by President Christine Lagarde will be all the more important for clues on future policy moves.
Although economic growth in the eurozone remains lackluster, expectations of a pause in July are growing, as this would allow the ECB a chance to reassess the impact of the erratic U.S. economic and trade policies.
"Getting the hawks to support a June cut may require a hint of conditional patience: an implicit willingness to pause in July and wait until September before easing again, as long as there were no major downside surprises in the meantime," Deutsche Bank analysts said in a note.
Germany’s Merz set to meet President Trump
A United States deadline for "best offers" on trade came and went on Wednesday without any trade announcements, but the trade talks go on.
Germany’s new chancellor, Friedrich Merz, will hold face-to-face talks with U.S. President Donald Trump later Thursday, looking to stave off looming U.S. tariffs and sustain U.S. backing for Ukraine.
German industrial orders unexpectedly rose in April thanks to strong domestic demand, climbing 0.6% on the previous month and beating expectations for a fall of 1.0%.
Mitie impresses with FY results
In the corporate sector, Mitie Group (LON:MTO) reported a strong set of full-year results, as the energy services company demonstrated progress in the first year of its three-year transformation plan.
Wise (LON:WISEa) announced plans to pursue a primary listing in the United States while retaining a secondary listing on the London Stock Exchange (LON:LSEG), with the fintech company seeking to expand its shareholder base, increase trading liquidity, as well as opening the door for potential inclusion in major U.S. indices.
Source: Investing.com
