European shares traded higher on Thursday, supported by gains across sectors, as investors awaited the European Central Bank’s policy decision later in the day.

The pan-European STOXX 600 index edged 0.4% higher by 0839 GMT, extending gains from the previous session.

Stocks in Germany rose 0.4% to a record high, as optimism lingered after Europe’s largest economy passed a tax relief package on Wednesday.

On the day, the ECB monetary policy meeting will grab the spotlight, where a 25-basis-point interest rate cut is widely expected.

In the market, construction and materials shares were up 1.3%, leading sectoral gains, while technology stocks advanced 0.8%, tracking gains in Asian tech stocks.

On the flip side, travel and leisure stocks bottomed the index with a 0.6% decline.

London’s Wizz Air plunged 24% after the budget carrier missed its annual operating profit expectations, and was on track for its steepest single-day fall on record.

Meanwhile, trade uncertainty remained as U.S. President Donald Trump’s deadline for countries to present their improved trade negotiations passed without any concrete developments.

Germany’s new chancellor, Friedrich Merz, will hold his first face-to-face talks with Trump later in the day in Washington.

U.S. Defence Secretary Pete Hegseth has said that a defence spending commitment of 5% of GDP across the NATO alliance will happen, ahead of the bloc’s defence ministers meeting. Mitie Group slipped 11% after the British outsourcer said it will acquire smaller peer Marlowe for about 366 million pounds ($496 million). Shares in Marlowe were up 8.3%.

Source: Globalbankingandfinance