European stocks rose on Thursday as traders in the region awaited the European Central Bank's latest monetary policy decision.
The pan-European STOXX 600 index was up 1.23% at 8:35 a.m. London time, with all major sectors and bourses trading in the green. The technology and mining sectors jumped 2.5% and 2.05% respectively.
The European Central Bank is expected to cut interest rates again by 25 basis points today, in what would be the first cut since June, when it said the door was open to another rate cut in September.
The European Central Bank's main interest rate is currently 3.75% after years of strong interest rate hikes.
The ECB meeting comes days before the Federal Reserve's meeting scheduled for September 17-18, when it is expected to begin its interest rate cutting cycle.
European investors are digesting the latest US CPI report, which showed a 0.2% increase in August, putting annual headline inflation at 2.5%, its lowest level since February 2021.
While core inflation, which excludes volatile prices such as food and energy, rose 0.3% on a monthly basis, exceeding expectations.
Traders are 85% likely to cut rates by 25 basis points, according to the CME FedWatch tool.
