Muted European Shares as Investors Await Key Economic Data

European shares saw marginal gains with the STOXX 600 index rising 0.2%. Healthcare and financial declines limited broader market gains. Investors remained cautious ahead of central bank decisions and U.S. inflation data. Retail and energy stocks made gains, while healthcare and banking sectors saw slight declines.

On Thursday, European shares edged higher, with the pan-European STOXX 600 index rising 0.2% to 580.77 by 0932 GMT. However, declines in major healthcare and financial stocks tempered overall market growth. Investors remained cautious, anticipating the European Central Bank's forthcoming policy announcement and imminent U.S. inflation data.

Regional bourses were generally positive, with Germany's DAX and London's FTSE 100 each ticking up by 0.1%. The Bank of England's expected 25-basis-point rate cut boosted market confidence, following a surprising drop in UK inflation. Despite retail and energy stocks gaining, healthcare saw a 0.1% decline.

The ECB's monetary policy meeting, where it is likely to hold rates, kept banks on edge. Market players focus on forward guidance, especially with hints of potential future rate hikes. In the U.S., President Donald Trump is poised to announce a new Fed chair, likely favoring lower interest rates.

(With inputs from agencies.)