European Shares Rise on Energy Gains, ECB Decision Looms

European shares experienced a modest rebound on Thursday, driven by gains in the energy sector, which offset declines in technology stocks. However, investor attention remained firmly fixed on the European Central Bank’s (ECB) impending interest rate decision.

The pan-European STOXX 600 index edged 0.3% higher, breaking a three-day losing streak. The energy sector provided the primary boost to the benchmark index, rising nearly 1% in tandem with stronger crude oil prices.

Technology stocks, on the other hand, continued their downward trend, declining by 0.4%. This decline was attributed to lingering concerns about the potential impact of stricter U.S. trade rules on the sector.

Market participants eagerly awaited the ECB’s interest rate decision, scheduled for release later in the day. While the central bank is expected to maintain its current interest rates, the focus will be on any signals regarding its future monetary policy direction. Analysts predict that the ECB will likely hint at a potential rate cut in the future, although this guidance is expected to be somewhat vague and accompanied by caveats.

Overall, the European stock market experienced a mixed performance, with energy stocks leading the way while technology stocks lagged. The ECB’s interest rate decision is expected to provide further clarity on the central bank’s outlook and potentially influence market sentiment in the coming days.