The pan-European index STOXX 600 ended trading at a record level, helped by the growth of real estate stocks, Reuters reports. In addition, investors were assessing the ECB’s monetary policy easing and analyzing corporate reports.
The European Central Bank lowered key rates by 25 bps. – to 2.75%, as the problem of sluggish economic growth in Europe became a priority over inflation risks. This decision coincided with analysts’ expectations and signaled the continuation of soft monetary policy.
As the published statistics showed, the eurozone economy unexpectedly stagnated last quarter. Markets now expect a 70bp rate cut before the end of the year.
The ECB’s decision contrasts with the actions of the Fed, which left the rate unchanged, which emphasizes the differences in the economic outlook of the two regions, Reuters notes.
The STOXX 600 rose 0.9 percent, completing its tenth positive session in 12 trading days. STOXX Europe 600 Technology added 1.1 percent, recovering from a sell-off triggered by the introduction of a cheaper AI model from China’s DeepSeek.
