European Markets Poised for ECB Rate Cut Amid Trade Uncertainties

European markets kicked off Thursday on a steady note as investors braced for a European Central Bank interest rate cut. Weak U.S. economic data earlier triggered a rally in government bonds and pushed Wall Street into bull market territory.

The ECB is set to announce a quarter-point cut, bringing euro zone borrowing costs down to 2%. Investors are eager to hear Christine Lagarde's outlook, especially amid uncertainty over U.S. trade deals. Strong domestic demand drove a surprise rise in German industrial orders, boosting investor sentiment across Europe.

Despite these developments, the euro and regional government bonds showed little movement. Traders await decisive ECB action against a backdrop of conflicting signals from ongoing U.S. trade talks and mixed economic data from major economies.

(With inputs from agencies.)