2025.12.1808:19:54UTC+00European Stocks Cautious, ECB Awaited

The STOXX 50 and STOXX 600 indices remained relatively stable on Thursday as investors anticipated a series of significant monetary policy announcements. Expectations are high that the European Central Bank will maintain its interest rates at current levels for the fourth time in a row. Similarly, Norway's and Sweden's central banks are anticipated to hold their rates steady. Conversely, the Bank of England is expected to implement a 25 basis point rate cut, a move that has been fully anticipated by the markets.

In terms of individual stock performance, ASML Holding and SAP both saw a modest recovery, each rising by nearly 0.3% after experiencing sharp declines in the previous trading session. The luxury sector did not perform as well, with shares of LVMH and L’Oréal slipping by 0.4% and 0.2%, respectively. BNP Paribas recorded a slight decrease of 0.2%, despite ongoing discussions to acquire the car-leasing division of Mercedes-Benz.

In contrast, BP shares showed little movement following the announcement of Meg O’Neill as the company's next CEO, amidst investor dissatisfaction regarding returns from its strategic shift towards renewable energy.