European stocks steady ahead of ECB interest rate decision

European stocks began trading on Thursday on a stable note, as caution dominated the trading atmosphere ahead of an expected monetary policy decision to be issued by the European Central Bank and statements from its president, Christine Lagarde, regarding expectations of lowering interest rates.

According to Reuters, the European STOXX 600 index stabilized at 0720 GMT. The telecommunications sector witnessed a decline of 1.3%.

All eyes will be on the ECB’s decision, which will be issued at 1215 GMT, in which it is likely to keep interest rates unchanged, but the focus will be on any hints regarding a possible cut in interest rates in June, given the easing of price pressures and the slowdown in the economy.

Sectors sensitive to interest rates rose, such as real estate, which witnessed a slight increase of 0.2%, while the financial institutions sector declined by 0.1%.

Among the stocks that witnessed strong movements, Société Générale rose 3.4% after the French bank said that it had agreed to sell its professional financing instruments unit to rival BBCI Bank for 1.1 billion euros ($1.18 billion) as part of a strategy. A broader scope for exiting from some investments.