On Thursday, European stocks edged higher in anticipation of a likely interest-rate reduction by the European Central Bank (ECB) later that day. The ECB is anticipated to implement a 25-basis point cut while indicating continued monetary easing throughout the year, even as eurozone inflation has seen a modest rise in recent months.
Economic indicators such as eurozone GDP, unemployment figures, economic sentiment, and consumer confidence are expected to attract investor focus as the trading session unfolds.
Earlier reports indicated a contraction in the French economy for the first time in nearly two years during the fourth quarter. The country's gross domestic product (GDP) saw a 0.1% sequential decline after a 0.4% growth in the third quarter, according to preliminary data from the national statistical institute INSEE.
The pan-European STOXX 600 index increased by 0.5% to 536.71, following a similar gain in the previous session. Meanwhile, Germany's DAX, France's CAC 40, and the U.K.'s FTSE 100 rose between 0.2% and 0.5%.
Nokia of Finland surged 2.6%, buoyed by second-quarter results that surpassed expectations, alongside an optimistic outlook for 2025. Switzerland's ABB climbed 3.3% after unveiling a $1.5 billion share buyback initiative, supported by robust order growth in the fourth quarter of 2024.
Conversely, Deutsche Bank shares fell 6%, as the German financial institution reported a larger-than-expected decline in both fourth-quarter and full-year 2024 profits, partly due to legal provisions and restructuring expenses.
Electrolux AB saw a nearly 6% drop, citing increased uncertainty in the North American market and the omission of dividends for the third consecutive year.
STMicroelectronics, a semiconductor producer, plunged 7.5% following forecasts of a further drop in sales during the first quarter of 2025 as key markets continue to face challenges. Swedish fashion retailer H&M also declined, slipping 2.6% after fourth-quarter sales failed to meet projections.
