European Stocks Steady After ECB Rate Cut Amid Political Uncertainty

European stocks steadied as the ECB cut interest rates by 25 basis points to combat economic slowdown and political uncertainties. The euro dipped slightly, while eurozone bank shares rose marginally. Swiss stocks saw gains following the Swiss central bank's significant rate reduction, propelling luxury stocks upwards despite retail declines.

European stocks managed to steady themselves on Thursday after the European Central Bank's anticipated move to cut interest rates by 25 basis points. The ECB's decision, aimed at supporting a flagging economy amidst rising political risks, left the door open for further easing measures.

The STOXX 600 index, a broad measure of European shares, flattened out with a marginal rise in rate-sensitive eurozone bank shares. This follows the ECB's fourth interest rate cut this year amid diminishing inflation fears and concerns over a potential trade war with the U.S. The euro dipped against major currencies, while benchmark German bond yields remained largely unchanged.

Swiss shares climbed as the Swiss National Bank announced a substantial 50 basis point rate cut, its largest in nearly a decade. The move aimed to forestall anticipated rate cuts from other central banks and prevent the Swiss franc's ascent, boosting luxury stocks while retail continued its downward trend.

(With inputs from agencies.)