European Markets Surge Amid Anticipated Rate Cuts

European stocks saw a slight increase as investors anticipate a rate cut from the European Central Bank amidst slowing growth and political challenges. The STOXX 600 index reflected morning gains in oil, gas, auto, and mining sectors. Analysts speculate on possible rate cuts, impacting various European and Swiss stocks.

European stocks rose modestly on Thursday as market participants eyed a potential rate cut from the European Central Bank. The move comes as the euro zone faces sluggish growth and rising political risks.

The STOXX 600, a broad gauge of European stocks, added 0.1% by mid-morning, driven by sectors sensitive to economic shifts like oil& gas, automobiles, and mining. Economists broadly expect the ECB to lower rates by 25 basis points, with some debate over a larger 50 basis point reduction as inflation nears targets and economic activity wanes.

The Swiss National Bank is also under scrutiny, with expectations of a significant rate cut. Market responses were mixed; SThree Plc shares plummeted following a profit warning, while Swiss pharmaceutical company Lonza saw its stock price climb after reaffirming its annual outlook.

(With inputs from agencies.)