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STOXX 600 jumps to record high ahead of ECB rate decision

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European shares reached a record high on Thursday, driven by industrials and technology stocks, as investors awaited the European Central Bank's monetary policy verdict, which is likely to include an interest rate cut.

The pan-European STOXX 600 index was up 0.3%, as of 0818 GMT, and on track for its third consecutive session of record gains.

A potential 25-basis-point cut by the ECB would reduce the deposit rate to 2.75%, its lowest level since early 2023. The decision contrasts to the U.S. Federal Reserve's verdict on Wednesday to leave rates unchanged.

Industrials jumped 0.8%, boosted by a 3.2% jump in ABB after the Swiss engineering group reported fourth-quarter profit slightly ahead of forecast.

Bucher Industries jumped 4% following its quarterly results.

The technology sub-index also extended gains, with a 0.6% climb. Heavyweight chip equipment maker ASML added 2.3%, while AI-exposed firm Schneider Electric gained 2.4%.

In contrast, shares of Deutsche Bank slid about 6% after Germany's largest lender posted a bigger-than-expected drop in fourth quarter.

STMicroelectronics, one of Europe's largest chipmakers, fell 6% after the company forecast sales to drop further in the first quarter of 2025.

(Reporting by Nikhil Sharma; Editing by Sherry Jacob-Phillips)

Copyright (2025) Thomson Reuters.

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