European Shares Extend Gains Before ECB Rate Decision

(RTTNews) - European shares were moving higher on Thursday ahead of an expected interest-rate cut by the European Central Bank (ECB) later in the day.

The ECB is expected to deliver a 25-basis points rate cut and signal further easing this year despite euro zone inflation ticking upwards over the past few months.

The euro zone GDP, unemployment, economic sentiment and consumer confidence figures may garner attention as the session progresses.

Official data revealed earlier in the day that the French economy contracted for the first time in nearly two years in the fourth quarter.

Gross domestic product shrank 0.1 percent sequentially after expanding 0.4 percent in the third quarter, according to first estimate from the statistical office INSEE.

The pan European STOXX 600 was up half a percent at 536.71 after gaining half a percent in the previous session.

The German DAX, France's CAC 40 and the U.K.'s FTSE 100 were up between 0.2 percent and half a percent.

Finland's Nokia rallied 2.6 percent after Q2 results beat estimates and the company forecast an upbeat 2025.

ABB climbed 3.3 percent. The Swiss industrial giant has announced plans for new $1.5 billion share buyback program after delivering strong order growth in fourth quarter of 2024.

Deutsche Bank shares slumped 6 percent. The German lender posted a bigger-than-expected drop in fourth quarter and 2024 full-year profit as a result of legal provisions and restructuring costs.

Electrolux AB was also down nearly 6 percent. The home appliance maker has warned of more uncertainty for the North American market and skipped dividend for a third year in a row.

Chipmaker STMicroelectronics plummeted 7.5 percent. The company expects sales to fall further in the first quarter of 2025 due to ongoing downturn in its key markets.

Swedish fashion giant H&M fell 2.6 percent after fourth-quarter sales missed forecasts.