FX.co ★ European Markets Rise on Trade Optimism Ahead of ECB Decision

European stock markets saw an uptick on Thursday, with the STOXX 50 rising close to 1% and the STOXX 600 gaining 0.6%. This positive momentum was largely driven by increased optimism surrounding trade, following reports that the European Union and the United States are close to agreeing on implementing 15% tariffs on certain European imports while exempting others from these duties. Additionally, market participants are keenly awaiting the European Central Bank’s policy announcement later today, where interest rates are anticipated to remain steady in light of previous rate reductions, as policymakers continue to manage persistent trade uncertainties.

On the corporate front, shares of Deutsche Bank surged by 6% after the financial institution reported a second-quarter profit that exceeded expectations, marking a turnaround from the previous year's loss. BNP Paribas also advanced by 3%, surpassing estimates in terms of both revenue and earnings. Conversely, Nestlé experienced a decline of over 3% after it revealed a drop in sales and income for the first half of the year. Meanwhile, Lloyds Banking Group edged down by 0.5%, despite delivering strong second-quarter results, as the bank reaffirmed its financial outlook for 2025.