ECB Rate Decision Today: What It Means for European Stocks
TLDR
- European stocks were mostly flat Thursday after a 1.4% selloff Wednesday
- The ECB is expected to raise rates by 25 basis points to 2.5%
- Brent crude stayed above $100 a barrel, keeping inflation fears high
- Associated British Foods dropped nearly 12% after weak Primark sales
- U.S. inflation data due Thursday and Friday could affect Fed rate expectations
European shares steadied on Thursday after their worst session in two months. Investors were waiting for the European Central Bank to announce its interest rate decision later in the day.
The pan-European STOXX 600 index traded largely flat at 639.79 points. It had fallen 1.4% on Wednesday as oil prices surged.
Brent crude climbed above $100 a barrel for the first time since July. That rise stoked fresh concerns about inflation and pushed investors to reassess how long central banks might keep rates high.
The ECB was expected to raise its key rate by 25 basis points, bringing it to 2.5%. The announcement was due at 12:15 GMT, followed by a press conference from ECB President Christine Lagarde at 12:45 GMT.
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