European equities eked out gains on Thursday in volatile trading as investors kept a cautious stance ahead of the European Central Bank’s interest rate announcement later in the day. The STOXX 600 index rose 0.3% to 620.24 points by 0717 GMT, reflecting a market trading between geopolitical risk and company-specific moves.
Geopolitical developments in the Middle East put upward pressure on energy prices and weighed on sentiment. Crude oil was trading near $95 a barrel after new airstrikes by the U.S. and Iran heightened concerns over supply, while market participants noted there were no signs that the Strait of Hormuz - a key route for global oil shipments - would reopen in the near term.
The energy-driven cost environment hit travel and leisure names in particular. EasyJet and Lufthansa were among the larger sectoral fallers, declining 1.7% and 0.5% respectively as higher fuel costs are a headwind for carriers. Offsetting some of that sector weakness, Wizz Air reported an annual profit that topped estimates and its shares jumped 4.6%. The low-cost carrier, however, opted not to provide a fiscal 2027 forecast, citing an uncertain outlook.
Corporate takeover activity captured attention elsewhere in the market. Hugo Boss climbed 6.4% after Britain’s Frasers Group launched a €2 billion takeover offer for the German fashion group.
In technology and chip stocks, some names outperformed as investors rotated toward semiconductor exposure. BE Semiconductor and ASM International gained 4.2% and 4.8% respectively. Observers noted the broader technology sector had experienced elevated volatility since late last week, with AI-related stocks pausing after a strong rally over the previous two months.
Focus will shift to the ECB’s policy decision later in the day. Market pricing compiled by LSEG suggested traders expected a 25-basis-point increase. Analysts and investors will be closely parsing the guidance on the central bank’s forward path, given the potential economic repercussions of the recent oil shock.
Market snapshot:
- STOXX 600: +0.3% to 620.24 by 0717 GMT
- Brent crude: near $95 a barrel
- EasyJet: -1.7%; Lufthansa: -0.5%; Wizz Air: +4.6%
- Hugo Boss: +6.4% after €2 billion takeover offer from Frasers Group
- BE Semiconductor: +4.2%; ASM International: +4.8%