European Shares Surge Ahead Of ECB Rate Decision

European stocks traded higher on Thursday ahead of a European Central Bank policy meeting later in the day.

The central bank is widely expected to cut its key interest rates by 25 basis points amid falling inflation and economic indicators signaling a weaker outlook.

ECB staff macroeconomic projections and ECB Chief Christine Lagarde's press conference due at 8.45 am ET may sway markets as the day progresses.

The pan European STOXX 600 was up 1.1 percent at 513.42 after ending flat with a positive bias on Wednesday.

The German DAX surged 1.3 percent, while France's CAC 40 and the U.K.'s FTSE 100 both were up around 0.9 percent.

The dollar firmed up after August U.S. CPI came in as expected, but core CPI inflation unexpectedly rose to 0.3 percent month-on-month, denting hopes for a 50-bps rate cut at next week's FOMC meeting.

Technology stocks followed their U.S. peers higher, with Infineon and ASML Holding rallying 4-5 percent.

Swiss drug maker Santhera Pharmaceuticals Holding AG slumped 8 percent after posting a first-half net loss of 15.3 million Swiss Francs.

Roche tumbled 3.4 percent after reports that an early-stage trial of an obesity medication showed a high rate of temporary side effects.

Nordex SE climbed 2.1 percent. The German wind turbine manufacturer said it has received an order from renewable energy company Ørsted for its 43 MW Farranrory wind farm in Ireland.

British lender Lloyds Banking Group rose about 1 percent, HSBC rallied 2 percent and Standard Chartered added 1.2 percent after the Bank of England relaxed a proposed overhaul of the banking system.

Higher base metal prices lifted mining stocks, with Anglo American, Antofagasta and Glencore rallying 3-4 percent.

Rail ticketing app Trainline soared 11.3 percent after posting strong first half results and upgrading its full-year profit guidance.

Housebuilder Barratt Developments rose 2.2 percent, Taylor Wimpey added 1.5 percent and Persimmon gained 1.4 percent after the RICS house price balance survey showed a positive reading for the first time since October 2022 in August.

Online trading firm IG Group Holdings rose 1.3 percent after reporting a jump in revenue in its first quarter.

Market Analysis