On January 25, 2024, a euro currency sculpture stood in the center of Frankfurt am Main in western Germany.
Kirill Kudryavtsev | Kirill Kudryavtsev AFP | Getty Images
LONDON – European stocks rose on Thursday as traders expected the European Central Bank to cut the euro zone’s borrowing costs for the first time since September 2019.
The pan-European STOXX 600 index rose 0.6% in early trading, with all major exchanges and most sectors rising. Technology stocks rose 1.7%, while utilities fell a rare 0.7%.
Healthcare stocks rose 1%, led by Danish pharmaceutical giant Novo Nordisk, which rose 3.9% to a new high on continued demand for its blockbuster Wegovy weight loss drug.
Although the European Central Bank is widely expected to cut interest rates at its policymakers’ meeting, investors will be closely watching whether slightly higher-than-expected euro zone inflation data released on Friday will affect the central bank’s decision-making.
Regardless, the ECB meeting has stimulated markets elsewhere; Asia-Pacific stocks rose overnight as investors awaited a rate cut from the central bank, while weak U.S. labor market data on Wednesday raised hopes that the Federal Reserve might follow suit, boosting sentiment. .
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