European stocks rise on Thursday

European stocks rallied on Thursday, with the STOXX 50 climbing 0.7% and the STOXX 600 up 0.5%, as investors digested the latest Federal Reserve decision and looked ahead to key central bank announcements in Europe.

The Fed cut its benchmark rate by 25 basis points, a widely anticipated move, and signaled an additional 50 basis points of easing by year-end.

However, Chair Jerome Powell stressed that the cut should not be interpreted as the beginning of an aggressive new easing cycle, instead framing it as a policy adjustment in response to softening labor market data and slowing inflation momentum.

The nuanced message helped boost risk sentiment globally, though traders remained cautious about the pace of future cuts.

Closer to home, attention turned to the Bank of England’s policy decision scheduled later in the day. Markets overwhelmingly expect the BoE to hold borrowing costs steady, as policymakers balance persistent inflation pressures with evidence of a cooling economy. Traders are keenly watching Governor Andrew Bailey’s tone for signals on the timing of potential easing in early 2026.

Equities advanced broadly, but technology and industrials led the charge. SAP gained 2.3%, ASML Holding rose 2%, and Schneider Electric advanced 2.2%, buoyed by optimism around digital infrastructure and automation demand. Industrial giants Linde (+1.8%) and Siemens (+1.3%) also posted strong gains.

Financials were another bright spot, with banks tracking higher amid improved investor appetite for cyclicals. Banco Santander rose 2.1%, UniCredit 1%, Intesa Sanpaolo 0.9%, and BNP Paribas 1.1%, helped by expectations of steadier credit conditions and resilient earnings outlooks.

Overall, the session reflected optimism that global monetary easing—led by the Fed—will help sustain growth and support corporate earnings in the second half of the year. Still, lingering risks tied to trade tensions, energy markets, and geopolitical uncertainty kept gains measured.