European stocks traded solidly higher on Thursday, with both the STOXX 50 and STOXX 600 climbing about 0.8%, as investors largely looked past fresh Middle East tensions and the latest ECB policy announcement. The US military said it had completed strikes in Iran, while Israel reported missile launches from Lebanon and Kuwait closed its airspace in response to what it called “Iranian aggression.” Despite these developments, market sentiment held firm.
At the same time, the ECB raised interest rates by 25 bps, revised its inflation forecasts upward, and trimmed its growth outlook. These moves, however, were broadly anticipated and largely priced in by markets. The technology sector was among the strongest performers, buoyed by a global rebound in semiconductor shares after recent weakness in the industry.
