European shares inched higher on Thursday, though gains were modest, as investors awaited the European Central Bank’s latest policy announcement and upcoming U.S. inflation figures.
At 07:05 GMT, Germany’s DAX rose 0.1%, France’s CAC 40 added 0.3%, and the U.K.’s FTSE 100 advanced 0.3%.
ECB Meeting Takes Center Stage
All eyes were on Frankfurt as the ECB wrapped up its policy meeting. Analysts widely expect the central bank to keep interest rates on hold. Following a key rate reduction to 2% by June, the ECB has maintained a steady stance, with inflation near target levels and growth stabilizing across the eurozone.
Despite this, lingering uncertainties—including U.S. President Donald Trump’s 15% tariffs on EU imports, subdued regional growth, and political unrest in France—suggest that the ECB may leave the door open for potential future easing. ECB President Christine Lagarde is expected to provide limited guidance, though the possibility of further rate cuts remains if inflation drops below the 2% target next year.
U.S. CPI in Focus
Investors are also focused on the U.S. consumer price index report ahead of next week’s Federal Reserve meeting. Headline CPI is forecast to have increased 2.9% year-on-year in August, the fastest pace since January, while core CPI is expected to remain steady at 3.1%. Markets have already priced in a 25-basis-point Fed rate cut, but lower-than-expected inflation readings could fuel speculation of a larger 50-basis-point adjustment.
Corporate Highlights: Energean Secures New Contracts
Corporate news was light Thursday, though Energean Oil & Gas (LSE:ENOG) made headlines with over $4 billion in new long-term gas deals in the first half of 2025, bringing total contracted revenues to roughly $20 billion over the next 20 years.
Oil Prices Ease Amid U.S. Demand Concerns
Oil markets softened on Thursday after earlier gains driven by geopolitical tensions in Russia and the Middle East. Brent crude futures fell 0.1% to $67.41 per barrel, while U.S. West Texas Intermediate futures dropped 0.2% to $63.57 per barrel as of 03:05 ET.
U.S. crude inventories rose by 3.9 million barrels in the week to September 5, exceeding expectations of a 1 million barrel draw, according to the Energy Information Administration. Gasoline stocks also increased by 1.5 million barrels, against forecasts of a 200,000-barrel decrease. These figures highlight concerns that slowing demand in the world’s largest oil consumer could weigh on prices later in the year.
Oil had previously surged over $1 per barrel on Wednesday, reflecting market worries over supply disruptions in Russia and the Middle East. This continued a broader upward trend for crude prices throughout September, following a three-month low on September 5.
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