FX.co ★ European Stocks Hold Gains

European stocks maintained their initial gains on Thursday, as the European Central Bank opted to keep its key policy rates unchanged after a series of eight consecutive reductions. Investors are also evaluating the trade outlook involving the European Union. Both the STOXX 50 and the STOXX 600 indices rose by approximately 0.5%. The ECB highlighted that the current disinflation is proceeding as anticipated since the last meeting in June. They are likely waiting for further insights into economic developments, the possibility of a trade agreement with the United States, and concerns regarding the euro's strength before deciding on any further rate cuts this year. Meanwhile, reports suggest that the United States might agree to reduce tariffs on EU goods to 15%, aligning with the minimum tariffs imposed on other nations, amid nearing EU trade negotiations. BNP Paribas experienced a 3% increase, exceeding expectations in revenue and earnings. Conversely, Nestlé saw a decline of over 3% after announcing lower sales and income for the first half of the year.