European Stocks Edge Up as Investors Eye ECB Rate Cut and Mixed Earnings

European stocks edged higher on Thursday, as investors anticipated a dovish tone from the European Central Bank (ECB) following its widely expected interest rate cut. The continent-wide STOXX 600 index inched up 0.1% at 0713 GMT, recovering slightly after a two-day decline.

Key Gainers and Earnings Highlights

• Finnish bank Nordea led gains, rising 5.5% after upgrading its forecast and unveiling a new share buyback program. This helped boost the broader banking sector.
• Germany’s Sartorius topped the STOXX 600, with its shares surging 12% after posting third-quarter results and maintaining its full-year outlook.
• Schindler, the Swiss elevator manufacturer, saw a 2% increase in its share price despite a global decline in new installations, signaling resilience in the real estate-related sector.

Major Decliners

• Nestle fell 2.4% after missing sales estimates, citing continued softness in consumer demand.
• Nokia dropped 3% following a miss on quarterly sales, reflecting weaker performance in the tech sector.

ECB Rate Cut in Focus
The ECB is expected to reduce interest rates by 25 basis points later in the day, following a similar move in September. With inflation easing and economic conditions in the eurozone deteriorating, investors are watching closely for signals that could justify the markets’ expectations of three more rate cuts by March 2025.

This balance between corporate earnings and macroeconomic expectations continues to shape European markets.