05.06.202516:09:08UTC+00European Stocks Rise after ECB Rate Cut

European stocks experienced gains on Thursday following the European Central Bank's (ECB) decision to enact its eighth interest rate cut within a year. The ECB reduced borrowing rates by 25 basis points and adjusted its inflation projections downward for both 2025 and 2026. Although the rate cut was largely anticipated, the more significant-than-expected downward adjustment to the 2026 inflation projection surprised some market analysts. ECB President Christine Lagarde noted that the inflation forecast remains unusually uncertain. Additionally, market sentiment was bolstered by news of a phone conversation between U.S. President Donald Trump and Chinese President Xi Jinping, indicating potential progress in trade negotiations. In economic developments, German factory orders unexpectedly increased in April, contradicting predictions of a decline. In corporate news, shares of the British financial technology firm Wise surged by 7.1% after the company reported its full-year earnings and revealed plans to move its primary stock listing from London to New York, underscoring ongoing concerns regarding the appeal of UK capital markets.