European Shares Rally as Investors Eye ECB Decision

European stocks rose on Thursday, with the STOXX 600 index up 0.4%, as investors anticipated the European Central Bank's policy meeting. Gains were seen across sectors, notably in construction, materials, and technology shares. Meanwhile, uncertainties persisted over U.S.-Europe trade and NATO defence spending commitments.

European shares experienced an upswing on Thursday, buoyed by widespread sectoral gains as attention turned to the European Central Bank's much-anticipated policy announcement later in the day.

The pan-European STOXX 600 index advanced by 0.4% at 0839 GMT, marking an extension of the positive trend from the previous session. German stocks reached a record high, spurred by optimism surrounding a newly enacted tax relief package for Europe’s largest economy.

Central to the day's agenda was the ECB monetary policy meeting, where market analysts widely expected a 25-basis-point interest rate cut, with a pause anticipated thereafter. Gains in construction, materials, and technology shares led market advances, while travel and leisure stocks faced declines.