Europe open: Stocks rise ahead of ECB policy announcement

(Sharecast News) - European stocks rose in early trade on Thursday as investors eyed the latest policy announcement form the European Central Bank.

At 0900 GMT, the benchmark Stoxx 600 index and Germany's DAX were 0.4% higher at 646.67 and 25,817.57, respectively, while France's CAC 40 was up 0.7% at 7,945.10.

All eyes will be on the ECB at 1315 GMT, amid expectations of no change.

Patrick Munnelly at Tickmill Group said: "The ECB is widely expected to keep policy rates unchanged today, with President Christine Lagarde likely to preserve optionality rather than offer definitive forward guidance. However, with market pricing implying over an 80% probability of a December rate hike, Lagarde will face intense scrutiny regarding French sovereign spread widening.

"With French OATs under pressure from elevated deficits and political friction, the ECB is expected to take a firm line: the Transmission Protection Instrument (TPI) is structured to address disorderly market fragmentation, not to insulate individual sovereigns from fundamental fiscal repricing. The Fed's position is similar in spirit, even if the US growth backdrop is stronger."

Overnight, the US Federal Reserve left policy rates unchanged at between 3.75% and 4.00%, as expected, with Hammack and Cook dissenting and favouring a 25 basis points hike.

On the corporate front, Shell surged as it posted a near-doubling of its third-quarter profit, driven by record refining margins, and announced a $5bn share buyback programme.

Airbus gained as it maintained annual targets despite a decline in third-quarter profits.

Lloyds Banking Group was weaker despite saying it was on track to meet 2026 guidance as it posted a rise in third-quarter pre-tax profit and net income that met analysts' expectations.

Carlsberg fell as the Danish brewer reaffirmed its full-year profit expectations as third-quarter sales met expectations

Haleon tumbled as the consumer healthcare firm cut its full-year organic revenue growth guidance, noting that its third-quarter performance was held back by soft cold and flu consumption.