European Stocks Near Record Highs Amid ECB Rate Cuts

European stocks neared record highs after the ECB cut rates by 25 basis points without indicating future moves. The STOXX 600 rose 0.8%, buoyed by financial and industrial sectors. Positive corporate earnings and investor sentiment also contributed to the gains, despite varied performance across individual stocks.

European stocks approached record highs as the European Central Bank executed a widely predicted 25-basis-point rate cut. The STOXX 600 index climbed 0.8% following a recent two-day slide, supported by gains in major markets such as France and Italy. Germany's DAX reached an all-time high.

The ECB's decision to cut rates marks its first consecutive rate reductions in 13 years. Yet, the bank offered no clear direction on future policy, repeating its stance of data-dependent decision-making amid a worsening economic outlook and controlled inflation.

Sector-wise, defense stocks led gains with a 2.6% increase, complemented by strong performances in financial and industrial sectors. Investor optimism was further lifted by robust corporate earnings, highlighted by notable rises in companies like Nordea and Sartorius, while others like Nokia and Mondi saw declines.

(With inputs from agencies.)