Positive Open Expected for European Indices

European markets are poised for a higher open on Thursday as investors focus on major earnings reports and the European Central Bank’s (ECB) monetary policy announcement. Germany’s DAX is projected to rise by 24 points to 21,649, France’s CAC by 25 points to 7,892, and Italy’s FTSE MIB by 72 points to 36,627. Meanwhile, the U.K.’s FTSE 100 is expected to dip slightly, opening 2 points lower at 8,555.

ECB Expected to Cut Interest Rates

The ECB is anticipated to implement a 25-basis-point rate cut, reducing its overnight deposit facility rate to 2.75%. This marks the fifth rate cut since June 2024, as the central bank continues its policy easing to support economic growth. Despite inflation pressures, subdued manufacturing and services activity in the eurozone, along with below-average consumer confidence, have reinforced expectations for further easing.

Key Economic Data on the Radar

Investors will also monitor significant economic indicators, including growth data from France, Germany, and the eurozone, along with unemployment, consumer confidence, and economic sentiment reports. These figures are expected to provide further clarity on the region’s economic outlook.

Earnings Season in Full Swing

A slew of earnings reports is set to shape market sentiment, with major companies such as Deutsche Bank, Shell, Nokia, Roche, H&M, ABB, and Sanofi among those releasing their financial results on Thursday.

Global Market Overview

In Asia-Pacific, Australian and Japanese stocks continued their upward momentum, while markets in Taiwan, South Korea, China, and Hong Kong remain closed for Lunar New Year holidays. U.S. futures edged higher as Wall Street digested tech earnings and the Federal Reserve’s decision to hold rates steady.