European Markets Steady Amid Pre-ECB Decision Anticipation

On Thursday, European shares experienced modest gains, buoyed by strength in the automotive and industrial metal mining sectors, as investors awaited the European Central Bank's policy decision.

The pan-European STOXX 600 index rose by 0.2% at 0704 GMT, building on previous session's gains after Germany sanctioned a tax relief package, which helped boost investor confidence. Despite this, investors remained wary ahead of the ECB meeting, anticipating a 25-basis-point interest rate reduction.

Industrial metal miners advanced by 0.6%, bolstered by steady copper prices, while automakers recovered by 0.5% following previous losses. Uncertainty in trade continued as the deadline set by U.S. President Donald Trump for countries to present better trade negotiations expired without resolution.

In related developments, U.S. Defense Secretary Pete Hegseth announced plans for NATO to allocate 5% of GDP to defense spending during a meeting in Brussels. Despite this commitment, defense stocks in the alliance were marginally lower, with the index down by 0.3%.

Significant stock movements included Eutelsat's 13% plunge following Hanwha Systems' decision to sell its 5.4% stake, totaling around 78 million euros. Additionally, Wizz Air's shares dropped by 22% on the London market after the budget carrier's reported annual operating profit fell below analyst forecasts.

(With inputs from agencies.)