European Markets Respond Positively to ECB's Rate Decision

Following the European Central Bank's (ECB) decision to reduce interest rates by 25 basis points, major European stock markets experienced an uplift. Investors are closely analyzing the ECB's cautious economic outlook alongside a series of economic data releases.

Economic Indicators Show Mixed Signals Across Europe

Recent data revealed a slowdown in UK annual house price growth to 4.1% in January, contrasting with a 1.8% increase in German retail sales for December. Swiss retail sales also saw a significant rise of 2.6%. France reported a slight inflation increase, with markets keenly awaiting further data, including Germany's unemployment rate and consumer price report.

Stock Market Highlights

At 9:00 am CET, the French CAC 40 traded 0.12% higher, led by STMicroelectronics with a 1.53% increase. The Euro Stoxx 50 rose by 0.26%, with Prosus NV advancing 1.40%. The British FTSE 100 gained 0.31%, as Next PLC climbed 2.07%, and the German DAX advanced by 0.23%, with Deutsche Bank jumping 1.32%.

Currency Movements

The euro and the pound sterling both traded flat against the dollar at 8:58 am CET, selling for $1.04051 and $1.24333, respectively.