European equities experienced gains on Thursday, buoyed by anticipation of upcoming interest rate announcements from the Bank of England and the U.S. Federal Reserve, both of which are anticipated to reduce rates by 25 basis points.
Market participants are particularly keen to interpret guidance from Fed Chair Jerome Powell following the election of Donald Trump.
Earlier in the day, Norway's central bank maintained its policy interest rate at 4.50 percent, a peak not seen in 16 years.
Political developments in Germany also impacted investors' sentiment, with the German coalition government disbanding after Chancellor Olaf Scholz dismissed his finance minister in a late-night decision following extensive crisis discussions. This was followed by the resignation of three remaining ministers from the Free Democrats, setting the stage for snap elections.
In economic news, data revealed an unexpected contraction in Germany's industrial production for September. Destatis reported a 2.5 percent monthly decline in industrial production, partially countering the 2.6 percent increase noted in August. Additionally, September saw the first drop in German exports in three months, whereas imports showed recovery, thereby narrowing the trade surplus.
Meanwhile, U.K. property values continued an upward trajectory for the fourth consecutive month, achieving a record high in October. However, future price growth is expected to temper as slower interest rate cuts by the Bank of England and fresh government policies may hinder demand, according to mortgage lender Halifax.
The pan-European STOXX 600 index rose by 0.7 percent to 510.13, rebounding after a half-percent decline on Wednesday, fueled by concerns regarding Trump's trade and immigration policies.
Germany's DAX index surged by 1.3 percent, France's CAC 40 increased by 0.7 percent, while the U.K.'s FTSE index remained relatively stable.
In corporate developments, Italy’s Enel dropped 1.3 percent following a decrease in revenues for the initial nine months of 2024. ArcelorMittal, the world's second-largest steel producer, saw a nearly 5 percent increase after reporting a third-quarter core earnings decline that was less severe than anticipated.
Banco BPM's stock jumped 9 percent after announcing a proposal to fully acquire asset manager Anima Holding in a transaction valued at up to 1.6 billion euros ($1.7 billion), causing Anima shares to rise by 9.7 percent.
German manufacturer SGL Carbon increased by 3.4 percent, despite reporting lower profits and revenues for the third quarter.
Conversely, Air France-KLM plummeted 11 percent after posting an unexpected decline in its quarterly operating performance and cautioning about elevated annual expenses.
Rising commodity prices benefitted mining stocks, with companies such as Anglo American, Antofagasta, and Glencore each advancing around 3 percent while energy giant Shell gained 1 percent.
J Sainsbury's share price fell 3 percent as the British grocery chain maintained its full-year profit growth forecast of up to 10 percent.
BT Group, a telecommunications company, declined nearly 6 percent after downgrading revenue projections due to weak prospects in its business division.
Finally, Rolls-Royce Holdings experienced a 4.5 percent drop as the engine manufacturer reported ongoing supply chain difficulties affecting production.
