11.06.202607:37:39UTC+00European Stocks Higher, ECB Awaited

European equities advanced on Thursday, with the STOXX 50 up 0.7% and the STOXX 600 rising 0.5%, as investors monitored escalating tensions in the Middle East and prepared for the ECB’s latest monetary policy decision. The US military reported it had completed strikes in Iran, while Israel said missiles had been launched from Lebanon. At the same time, Kuwait closed its airspace, citing “Iranian aggression.”

Against this backdrop, markets largely anticipated the ECB to deliver its first interest rate hike since 2023 later in the morning. Technology shares underpinned the broader move higher, with semiconductor names rebounding from recent losses: STMicroelectronics gained 2.7%, ASML Holding added 2.6%, and Infineon rose 1.2%.

Corporate news also drove individual stock moves. Hugo Boss jumped more than 6% after its largest shareholder, Frasers Group, launched a $2 billion takeover bid for the fashion house. By contrast, several heavyweight names weighed on the indices, including Novo Nordisk (-1.2%), SAP (-4.8%), and BMW (-2.5%). Travel and leisure stocks were likewise among the session’s notable laggards.