FX.co ★ European Stocks Hold Gains After ECB

European stocks maintained their upward momentum on Thursday, with the STOXX 50 and STOXX 600 indices each advancing 0.4%. This positive performance followed the European Central Bank's (ECB) decision to keep interest rates steady for the second consecutive meeting, aligning with market predictions. Policymakers noted that the inflation outlook remained largely stable, tweaking their Eurozone inflation forecasts slightly upwards for 2025 and 2026, raising them by just 0.1 percentage point to 2.1% and 1.7%, respectively. As a result, money markets adopted a slightly more dovish stance heading towards the year's end, now anticipating about 7 basis points of easing. Meanwhile, the forthcoming U.S. Consumer Price Index (CPI) report is expected to offer additional insight into tariff-related price pressures. However, this data is unlikely to alter market expectations significantly, as many still anticipate a rate cut by the Federal Reserve next week.