European Stocks Close Slightly Higher

(RTTNews) - European stocks closed slightly higher on Thursday with investors digesting the European Central Bank's interest rate decision, and a slew of regional economic data, in addition to assessing the potential impact of Trump Administration's tariff moves on global trade and growth. The pan European Stoxx 600 gained 0.16%. The U.K.'s FTSE 100 edged up 0.11% and Germany's DAX closed 0.19% up, while France's CAC 40 ended 0.18% down. Switzerland's SMI gained 0.16%.

Among other markets in Europe, Austria, Belgium, Denmark, Finland, Greece, Ireland, Netherlands, Norway, Russia, Spain, Sweden and Turkiye closed higher.

Czech Republic, Iceland and Poland ended weak, while Portugal closed flat.

The European Central Bank lowered its key rates by 25 basis points today, as expected. With this decision, the interest rate on the main refinancing operations, the interest rates on the marginal lending facility and the deposit facility stood at 2.15%, 2.4% and 2%, respectively.

However, the ECB hinted at a pause in its year-long easing cycle after inflation finally returned to its 2% target.

ECB President Christine Lagarde said the central bank for the 20 countries that share the euro was in a "good position", which investors took as signalling a break in cuts, if not an end to policy easing.

In the UK market, Antofagasta and Fresnillo climbed 5.3% and 5%, respectively. Babcock International, Smith & Nephew, British American Tobacco, Anglo American Plc, Experian and Imperial Brands also moved up sharply.

Wise Plc shares gained more than 7% after the fintech firm said it would move its primary listing from London to New York.

Shares of budget air carrier Wizz Air Holdings tanked nearly 28% after the company reported an around 62% slide in annual operating profit, citing growth challenges and capacity constraints.

Diageo, WPP, Sainsbury (J), Vodafone, Pershing Square Holdings, Unite Group, Melrose Industries, Rolls-Royce Holdings, IAG and Natwest Group declined sharply.

In the German market, Bayer climbed nearly 4.5%, lifted by an upward revision in the stock's rating by Goldman Sachs. GS has upgraded Bayer's rating from 'neutral' to 'buy.' Also, the USFDA has approved expanded use for Bayer's prostate cancer drug Nubeqa.

Commerzbank, Heidelberg Materials, Rheinmetall and Deutsche Bank gained 2 to 3.5%. Fresenius Medical Care also ended notably higher.

Puma drifted down 2.7%. Symrise ended 1.6% down, while E.ON, Adidas, Henkel, MTU Aero Engines and Merck also closed weak.

In the French market, Societe Generale, Teleperformance, Engie and Thales lost 1.7 to 2.4%. Unibaill Rodamco, BNP Paribas, Publicis Groupe, Bouygues, Michelin and STMicroElectronics also posted impressive gains.

Pernod Ricard closed lower by about 5%. Airbus, Hermes International, LVMH, Renault and Stellantis also ended on a weak note.

Data from Eurostat showed Eurozone producer prices decreased 2.2% month-on-month in April, faster than the 1.7% decline posted in March. Producer prices decreased 2.2% month-on-month in April, faster than the 1.7% decline posted in March.

Data from S&P Global said the HCOB Germany Construction PMI slipped to 44.4 in May 2025 from 45.1 in April, signaling a slightly faster contraction in the sector.

Data from Destatis showed Germany's factory orders increased for the second straight month in April, though at a slower pace. Factory orders rose 0.6% month-on-month in April, following a revised 3.4% rise in March. Meanwhile, orders are forecast to fall 1%.

On a yearly basis, factory orders logged an expansion of 4.8%, faster than the 3.7% growth in the prior month.

Data from S&P Global showed the HCOB Construction PMI in France fell to 43.1 in May, from 43.6 in the previous month, marking another sharp monthly contraction and extending the sector's downturn into its third consecutive year. The May reading also marked the steepest contraction since February, with the housing sector continuing to be the main source of weakness.

On a yearly basis, producer price inflation softened to 0.7 percent from 1.9 percent in March. Nonetheless, this was the fourth consecutive rise in prices.

The U.K.'s Office for National Statistics has said that the annual inflation rate for April was overstated due to a data error stemming from a government department. According to revised data, consumer price inflation for the 12 months to April 2025 stood at 3.4% instead of 3.5% reported earlier.

Survey data from S&P Global showed the UK construction sector contracted at a slower pace in May as the fall in new orders hit the slowest in four months.

The construction Purchasing Managers' Index posted 47.9 in May, up from 46.6 in April. The indicator suggested the slowest reduction in output volumes since January.

UK car market returned to growth in May as discounting helped to boost demand for electric vehicles, data from the Society of Motor Manufacturers and Traders, or SMMT, showed Thursday. Car registrations increased 1.6% year-on-year to 150,070 units in May.