European Markets Steady After ECB Cuts Rates Amid Growth Concerns

European stock markets trimmed earlier losses to close nearly unchanged on Thursday, following a widely anticipated interest rate cut by the European Central Bank. The decision, aimed at supporting the region’s sluggish economy, saw the ECB lower rates by 25 basis points — the third cut this year.

The Stoxx 600 index ended the day down just 0.1%, recovering from deeper losses earlier in the session. National indexes were mixed: the U.K.’s FTSE 100 was flat, while Germany’s DAX and France’s CAC 40 each slipped by 0.5%.

Among standout movers, Siemens Energy shares surged 10% after the company raised its fiscal 2025 guidance, offering a rare bright spot in an otherwise cautious market. On the downside, luxury goods firm Hermès dropped 3.2% after narrowly missing its sales target. The French brand recently surpassed LVMH to become the world’s most valuable luxury company by market cap.

The ECB’s move comes amid growing uncertainty around global trade policies and tariff impacts, particularly as pressure builds from geopolitical tensions and shifting demand patterns. Analysts view the rate cut as a signal that the central bank remains focused on boosting growth and warding off prolonged economic stagnation.

Meanwhile, markets in the Asia-Pacific region mostly rose overnight, bucking the downtrend seen on Wall Street after U.S. Federal Reserve Chair Jerome Powell warned of the inflationary risks tied to escalating trade disputes.