European Stocks End Higher on ECB Decision and U.S. Inflation Data
European markets closed in positive territory on Thursday as investors digested the latest interest rate decision from the European Central Bank (ECB) and fresh U.S. inflation figures.
Germany’s DAX index rose 0.3%, France’s CAC 40 gained 0.9%, and the U.K.’s FTSE 100 advanced 0.6%.
ECB Holds Rates
Attention was firmly on Frankfurt as the ECB wrapped up its policy meeting. Policymakers kept interest rates unchanged, as expected, with inflation now close to target. However, economic growth risks and political uncertainty leave the door open for further easing.
In June, the ECB cut its key deposit rate to 2% from a record 4% in just one year. Since then, the central bank has paused its easing cycle, with inflation now only slightly above the 2% goal after surging in the aftermath of the COVID-19 pandemic and Russia’s invasion of Ukraine.
U.S. CPI Data
Investors also examined the latest U.S. consumer price index (CPI) ahead of next week’s Federal Reserve meeting. CPI rose 2.9% year-on-year in August, up from 2.7% in July and in line with forecasts. On a monthly basis, inflation stood at 0.4%, above July’s 0.2% and slightly above expectations of 0.3%. The numbers reinforced expectations that the Fed may cut rates at its upcoming meeting.
Energean Signs Major Gas Deals
On the corporate front, Energean Oil & Gas (LON:ENOG) signed more than $4 billion in new long-term gas contracts in the first half of 2025. This brings its total contracted revenues to around $20 billion over the next two decades.
Oil Prices Retreat on Demand Concerns
Oil prices slipped on Thursday amid signs of weaker U.S. demand, despite strong gains earlier in the week driven by geopolitical risks in Russia and the Middle East.
By 11:55 ET, Brent crude futures were down 1.7% at $66.33 a barrel, while West Texas Intermediate (WTI) fell 1.9% to $62.44. U.S. crude inventories rose by 3.9 million barrels in the week ending September 5, against expectations for a 1 million-barrel draw. Gasoline stocks also climbed by 1.5 million barrels, contrary to forecasts of a decline.
Although demand worries weighed on prices, crude remains on an upward trend after rebounding from a three-month low earlier this month.
