European stocks rise on tech ahead of ECB meeting

European shares climbed on Thursday, driven by gains in technology stocks, as investors awaited the European Central Bank’s (ECB) interest rate decision later in the day, Reuters reported.

The pan-European STOXX 600 index rose by 0.6 per cent as of 0720 GMT, reaching its highest level in three weeks.

Market participants are anticipating the ECB to announce a 25 basis point (bps) cut in borrowing costs from the current record level of 4 per cent during the meeting scheduled for 1215 GMT. Currently, money markets are pricing in 64 bps of cuts for this year, according to LSEG data.

Technology stocks remained the top performers, surging by 1.8 per cent to nearly a 24-year high, building on gains from the previous session. Healthcare stocks also contributed to the gains, rising by 1 per cent, with Novo Nordisk climbing 3.5 per cent to reach a new record high.

The optimistic mood was supported by the S&P 500 and Nasdaq hitting record closing highs on Wednesday, driven by indications of easing labour market pressures that solidified expectations of a Federal Reserve rate cut in September.

In individual stock movements, Remy Cointreau saw a 4.9 per cent increase after the French cognac maker reported a smaller-than-expected decline in its annual profit and forecasted a recovery over the upcoming year.