European stocks traded in a narrow range on Thursday as investors remained cautious ahead of a packed schedule of central bank policy decisions across the region and the release of key U.S. inflation data.
The pan-European STOXX 600 edged 0.1% lower to 579.43 by 08:06 GMT. While several major European markets posted modest gains, Germany’s DAX slipped 0.1%.
In London, the FTSE 100 rose 0.1% as investors awaited the Bank of England’s interest rate decision. Markets are widely expecting a 25-basis-point cut, with expectations reinforced by a surprise slowdown in U.K. inflation reported on Wednesday.
Later in the day, the European Central Bank, Norway’s Norges Bank and Sweden’s Riksbank are all set to announce their policy decisions. Each is broadly expected to leave interest rates unchanged.
Investor attention remains focused on the ECB’s forward guidance, particularly after recent comments from policymakers hinted at the possibility of a rate hike next year. Such a move would mark a divergence from the current policy path of the U.S. Federal Reserve.
Sector moves: energy gains, healthcare lags
Energy stocks led the market higher, gaining 0.5% as oil prices extended their recent rally. BP shares edged up slightly after the company named Meg O’Neill, the current chief executive of Woodside Energy, as its next CEO.
Healthcare stocks underperformed, falling 0.6%. Novo Nordisk declined 1.4%, while AstraZeneca slipped 0.5%, weighing on the sector.
U.S. inflation data in focus
Beyond Europe, investors are closely watching the release of U.S. consumer price inflation data for November. The report is expected to offer fresh insight into the Federal Reserve’s future policy direction, especially after recent U.S. labor market data failed to materially alter market expectations.
