ECB Rate Cut: European Stocks Maintain Gains Despite Ambiguity

European stocks rose after the ECB cut interest rates by 25 basis points but offered no new guidance on future moves. The STOXX 600 index climbed following strong corporate earnings, despite no hints from the ECB about further rate cuts. Investor sentiment remained positive.

European stocks maintained a positive trajectory on Thursday as the European Central Bank implemented a 25-basis-point rate cut, a move that had been widely anticipated. Despite the reduction, the ECB did not provide any new signals about future policy actions.

The STOXX 600 index, which spans the continent, rose by 0.7% by 1225 GMT after experiencing a decline over the previous two days. The ECB's decision marked its second consecutive rate cut, a first in 13 years, although expectations for further cuts through March 2025 remain strong as inflation in the euro zone stabilizes.

Investors reacted positively to robust earnings reports. Notable gains were seen in Nordea, which surged 6% following an improved forecast and announced share buyback, and Germany's Sartorius, which grew 16% due to strong order intake. However, Mondi and Nokia faced setbacks due to disappointing quarterly reports.

(With inputs from agencies.)