Investors await the European Central Bank’s rate decision as regional equities extend gains amid geopolitical tensions.
European stocks edged higher in early trading, with the UKX rising 0.20% to mark a third straight session of gains. The CAC added 0.33%, while Germany’s DAX remained flat as caution persisted over escalating U.S.-Iran tensions in the Strait of Hormuz.
Markets have been volatile ahead of the ECB’s policy announcement, with investors weighing potential rate cuts against inflation concerns. The prior session saw mixed performance, as geopolitical risks offset optimism over easing monetary policy.
Traders are closely monitoring the ECB’s tone, with expectations of a dovish shift amid slowing economic growth in the eurozone.