European stocks decline ahead of ECB interest rate decision

European stocks fell at the open on Thursday due to investor caution ahead of a widely expected pause in the European Central Bank raising interest rates, while Nokia shares rose thanks to quarterly profits.

According to Reuters, the European Stoxx 600 index fell 0.2% by 0828 GMT, after jumping more than 1% in the previous session.

Investors’ attention is focused on the European Central Bank’s interest rate decision, which will be released later on Thursday. The bank is widely expected to keep interest rates at the current level of 4%.

Traders also expect a reduction of about 130 basis points this year, after expecting about two weeks ago a reduction of about 150 basis points.

Nokia shares rose 6.2% after the Finnish telecommunications equipment company’s operating profits exceeded expectations in the fourth quarter.

The European lenders sector fell 0.9%.

Deutsche Bank’s downgrade of the Italian UniCredit Bank’s rating led to an increase in the sector’s losses, with the stock falling 1.3%.