European Shares Positive On Hopes Of ECB Rate Cuts

(RTTNews) - European stocks were gaining in the mid-market trading on Thursday, following mostly positive Asian stock markets, as investors remain optimistic ahead of the European Central Bank's decision on key interest rates.

The ECB, at the governing council meeting in Frankfurt on Thursday, is widely expected to cut the main refinancing rate, the deposit facility rate and the lending rate by 25 basis points each.

The sentiments also reflect the rate cut by Bank of Canada, along with the lower-than-expected private payrolls data from the U.S.

Following the meeting, ECB Chief Christine Lagarde holds press conference at 8.45 am ET.

Among the economic releases, data from Eurostat revealed Thursday that Eurozone retail sales fell more than expected in May. Retail sales posted a monthly fall of 0.5 percent in April, in contrast to the revised 0.7 percent increase in March. Economists had forecast a 0.3 percent drop.

Further, the UK construction sector logged its fastest growth in two years in May with activity and new orders increasing at sharper rates, as per the survey results from S&P Global. The construction Purchasing Managers' Index rose unexpectedly to 54.7 in May from 53.0 in April.

The latest HCOB survey compiled by S&P Global showed that German construction sector continues to contract in May on sharp falls in total industry activity and new orders.

Switzerland's unemployment rate remained stable in May after falling slightly in the previous month, the State Secretariat for Economic Affairs, or SECO, said. The unadjusted unemployment rate came in at 2.3 percent in May, the same as in April.

Further, data from Germany's statistical office Destatis showed on Thursday that factory orders in the country fell unexpectedly in April, largely due to the sharp contraction in orders for other transport equipment.

As per preliminary figures from the Finnish Customs, Finland's foreign trade balance turned to a deficit in April from a surplus in the previous year as imports grew faster than exports.

The pan European STOXX 600 gained 0.7 percent at 524.72.

The German DAX climbed 1.1 percent to18,771.81 after adding 0.9 percent in the previous session, and France's CAC 40 grew 0.5 percent at 8,042.23.

The U.K.'s FTSE 100 was up 0.3 percent at 8,272.34. The Switzerland's SMI gained 0.6 percent following a 1.2 percent rise in the previous day.

Wall Street had closed on a positive note on Wednesday, helped by gains in the technology space triggered by a tech rally in AI-darling Nvidia. Nasdaq Composite surged 1.95 percent to close at 17,186.38 whereas the Dow Jones Industrial Average added 0.25 percent to finish trading at 38,807.33.

In the corporate news, Digital fashion retailer N Brown Group Plc gained more than 31 percent after reporting a profit in its fiscal 2024, despite prior year's loss, and weak revenues. The company also projects trading improvement in fiscal 2025.

Hargreaves Services plc shares grew 1.2 percent after Board expects to report fiscal 2024 profit before tax marginally ahead of market expectations.

In Germany, shares of Deutsche Bank AG were up 1.1 percent, and Deutsche Post gained 1.6 percent. Meanwhile, Bayer was down 1.1 percent and Siemens AG down 0.50 percent.

Among French corporates, shares of Air Liquide grew 1.15 percent, Capgemini went up 1.8 percent and Kering grew 2.6 percent, while Carrefour were down 1.2 percent.