ECB rate cut, Stoxx 600, FTSE, DAX

European stock markets closed higher after the ECB’s decision to cut rates by 25 basis points.

The Stoxx Europe 600 index closed up 0.9%, the U.K.’s FTSE 100 rose by 0.1% and Germany’s DAX was higher by 0.2%. Meanwhile, France’s CAC 40 was the only major benchmark to fall 0.2%.

— Ganesh Rao

Euro zone government bonds rallied on Thursday as regional investors monitored the European Central Bank’s decision to cut interest rates by 25 basis points.

The move had been largely priced into markets, with LSEG data showing traders had given the quarter-point cut a more than 90% chance of going ahead before it was announced.

Shortly after the ECB announced it would reduce its key interest rate to 2%, the yield on German 10-year government bonds — seen as a benchmark for the euro zone — fell 4 basis points.

Bond prices and yields move in opposite directions, so rising demand can push prices higher and yields lower.

The yield on French 10-year government bonds was down by 3 basis points at 1:43 p.m. in London, while their Italian counterparts saw yields move 5 basis points lower. Spanish 10-year bond yields fell by 4 basis points.

— Chloe Taylor

The European Central Bank on Thursday announced a 25-basis-point interest rate trim and lowered its inflation expectations on the back of a stronger euro and lower energy costs.

This takes the deposit facility rate to 2%, down from a mid-2023 high of 4%.

Ahead of the announcement, traders had been pricing in an almost 99% chance of the quarter-point cut according to LSEG data.

Read more here.

— Sophie Kiderlin

Spot silver was trading at around $35.60 per ounce at 11:26 a.m. in London, its highest price since 2012.

Chicago-listed silver futures for July delivery added 3.3% to trade at around $35.80, also marking the highest price since 2012.

A car tax data calculation error caused the U.K.’s inflation rate to be overstated by 0.1 percentage points for the year to April, the Office for National Statistics (ONS) said on Thursday.

The ONS had initially said last month that the U.K.’s annual rate hit 3.5% in April, coming in above analyst expectations. On Thursday, the statistics body released revised data, showing the country’s consumer price index rose instead by a lower 3.4% in the 12 months to April.

The revised April figure still exceeds the 3.3% levels previously expected by Reuters analysts.

Read more here.

— Holly Ellyatt

Shares of British fintech firm Wise popped 8.4% in early trade, after the company published its full-year earnings and said it would move its primary listing from London to New York.

For the fiscal year which ended in March 2025, Wise reported a 15% year-on-year jump in revenue, which came in at £1.2 billion ($1.6 billion). Profit for the year rose 18% to £416.7 million.

Analysts had been expecting full-year revenue of £1.4 billion and net income of £415.2 million, according to FactSet data.

— Chloe Taylor

We’re 22 minutes into Thursday’s trading session, and regional stocks are trading slightly higher, with traders anticipating an interest rate cut from the European Central Bank later today.

Sectors are trading in mixed territory, with major bourses all ticking higher. While gains in London and Frankfurt are muted, the French CAC 40 is up by 0.1%.

The pan-European Stoxx 600 has gained around 0.1%.

— Chloe Taylor

German factory orders rose 0.6% in April from the previous month, preliminary data showed on Thursday.

Economists polled by Reuters had had been expecting a monthly decline of 1%.  

The Federal Statistical Office said the rise in April was largely due to a significant increase in the manufacturing of data processing equipment, electrical goods and optical products.  

A month earlier, new factory orders rose by 3.4% month-on-month.

— Chloe Taylor

British money transfer firm Wise on Thursday said that it plans to move its primary listing location to the U.S., dealing a fresh blow to the London stock exchange.

Wise said in its full-year earnings statement that it will move to a dual listing, with its main listing hub shifting to the U.S. while maintaining a secondary listing in London.

“This would allow Wise’s shares to trade on both a US stock exchange and the LSE,” Wise said in its earnings announcement.

Read the full story here.

— Ryan Browne

European investors are awaiting the latest monetary policy decision from the European Central Bank, due to be announced at 2:15 p.m. Central European Time.

Markets are overwhelmingly pricing in a 25-basis-points cut to the central bank’s key interest rate, according to LSEG data. That would bring the deposit facility rate down to 2%.

In a note to clients on Thursday morning, analysts at Danske Bank said that while “the fight against inflation is almost over” in the euro zone, economic growth in the region is likely to remain below potential this year because of U.S. trade policies and cautious consumers.

“We view the risks to inflation as balanced since energy prices could increase more than expected while growth could be weaker than projected,” they said. “The ECB is anticipated to reduce the deposit rate to 1.5% this year, as we believe it is necessary to move into slightly accommodative territory to prevent de-anchoring inflation expectations and support activity below potential amidst trade uncertainty.”

Read more here about what to expect from the ECB today.

— Chloe Taylor

Good morning from London! This is CNBC’s live blog covering all the action in European financial markets on Thursday. All eyes are on the European Central Bank, which is expected to announce a rate cut.

Futures data from IG suggests London’s FTSE will open 4 points higher at 8,802, Germany’s DAX up 22 points at 24,276, France’s CAC 40 unchanged at 7,804 and Italy’s FTSE MIB 46 points higher at 40,123.

The ECB’s monetary policy decision is in focus for regional markets Thursday, with the central bank widely expected to trim interest rates by 25 basis points, taking its key rate, the deposit facility rate, to 2%.

Expectations of a rate cut were cemented after flash data on Tuesday showed inflation in the euro zone hit a cooler than expected 1.9% in May. 

Read more here: The European Central Bank is almost guaranteed to cut rates. Here’s what could happen next

— Holly Ellyatt

Asia-Pacific markets traded mixed and U.S. stock futures were near flat overnight with sentiment dented by U.S. data showing private sector hiring has hit its lowest level in over two years.

Private sector payrolls rose by just 37,000 in May, coming in sharply below the Dow Jones forecast of 110,000 and raising investor worries about the softening job market and the impact on the economy. Those concerns weighed on the major averages during the session, too.

Still, the market’s recent gains — which have been powered by a surge in technology stocks — coupled with a blowout first-quarter earnings season, have revived sentiment on Wall Street. Nevertheless, investors remain cautious that more pain could be ahead in light of the Trump administration’s tariffs.

— Holly Ellyatt, Pia Singh