European Shares Remain Stable as Market Attention Shifts to ECB Policy Decision

European shares opened cautiously on Thursday, reflecting a sense of apprehension ahead of the European Central Bank’s (ECB) monetary policy decision and President Christine Lagarde’s remarks regarding potential interest rate cuts.

As of 0720 GMT, the pan-European STOXX 600 remained flat, with the telecommunications sector experiencing a 1.3% decline.

Market focus is centered on the ECB’s upcoming decision scheduled for 1215 GMT. While it’s widely anticipated that the central bank will maintain current interest rates, investors are keenly observing any indications that a rate cut could be on the horizon, particularly in June, given the prevailing economic challenges and easing price pressures.

Sectors sensitive to interest rate changes, such as real estate, saw a modest uptick of 0.2%, while financials experienced a slight dip of 0.1%.

Among notable movers, shares of Societe Generale surged by 3.4% following the announcement that the French lender has reached an agreement to sell a professional equipment financing business to rival BPCE for 1.1 billion euros ($1.18 billion). This strategic move is part of Societe Generale’s broader divestment strategy.