Despite the resumption of U.S. strikes in Iran, European markets are trading in positive territory on Thursday. Investors remain cautious, however, ahead of the European Central Bank’s highly anticipated decision.
Investors had to navigate two major factors on Thursday : the military escalation in the Middle East and the European Central Bank’s monetary policy meeting.
In Paris, the CAC 40 gained nearly 0.5% in morning trading, hovering around 8,200 points, the Euro Stoxx 50 rose by more than 0.6%, the FTSE 100 also advanced by 0.6% to 10,316 points, and the German DAX edged up very slightly by 0.03%.
This resilience in European markets comes, however, against a particularly tense backdrop, as the United States carried out new strikes against several Iranian targets overnight. U.S. President Donald Trump once again threatened to intensify military operations if no peace agreement is reached with Tehran.
The ECB in the spotlight
The major event of the day remains, however, the European Central Bank’s decision. Markets widely anticipate a 25-basis-point hike in key interest rates, which would rise from 2% to 2.25% to contain inflationary pressures fueled by soaring energy prices.
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