European stocks edge up, ECB awaited

European stocks edged slightly higher on Thursday, with the STOXX 50 rising 0.1% and the broader STOXX 600 advancing 0.2%, as investors remained cautious ahead of key macroeconomic and policy events.

Market participants largely expect the European Central Bank to leave borrowing costs unchanged, but attention will center on updated staff projections and President Christine Lagarde’s press conference for clues about the policy trajectory through year-end.

Traders are particularly focused on whether the ECB acknowledges persistent wage pressures and sticky services inflation or instead leans more heavily on signs of economic weakness across the bloc.

In parallel, investors awaited the US consumer price index release, a key gauge of whether tariff-related pressures are feeding through to inflation. While the figures are unlikely to alter market consensus that the Federal Reserve will deliver a rate cut next week, the data could shape the scale and speed of easing beyond September.

A softer print would reinforce dovish bets, while an upside surprise might prompt some repricing of expectations.

On the corporate front, retail giant Inditex extended gains (+1.1%) after posting strong quarterly results on Wednesday, driven by resilient demand and effective cost control.

By contrast, tech-heavyweights underperformed, with SAP slipping 0.4% and ASML Holding down 0.3%, as cautious risk appetite ahead of central bank updates weighed on the sector. Energy stocks saw mild support from firmer crude oil prices, while defensive utilities lagged.

Overall, sentiment remained subdued, with thin gains reflecting investor reluctance to make bold moves before the twin catalysts of the ECB meeting and US CPI release. Analysts noted that the next sessions could see heightened volatility, depending on whether central banks deliver a dovish reassurance or push back against aggressive easing bets.