European Stocks Edge Higher Ahead of ECB Decision and U.S. Inflation Data

European stocks traded slightly higher on Thursday as investors awaited key monetary policy signals from the European Central Bank (ECB) and fresh U.S. inflation data. At 07:05 GMT, Germany’s DAX inched up 0.1%, France’s CAC 40 rose 0.3%, and London’s FTSE 100 gained 0.3%.

Markets remain focused on the ECB meeting in Frankfurt, where policymakers are expected to keep interest rates unchanged. The central bank halved its key rate to 2% earlier this year and has since paused further action as inflation cooled and growth steadied. However, with U.S. President Donald Trump imposing 15% tariffs on European imports, sluggish regional growth, and political uncertainty in France, the ECB is likely to keep the door open for future rate cuts. Inflation is projected to slip below the 2% target in 2026, leaving room for additional easing if necessary.

Investors are also bracing for U.S. consumer price index (CPI) data, which could heavily influence the Federal Reserve’s policy meeting next week. Headline CPI is forecast to rise 2.9% in August, with core inflation at 3.1%. A 25 basis-point Fed rate cut is widely anticipated, though a sharper-than-expected inflation spike could shift expectations toward a larger move.

In corporate news, Energean Oil & Gas announced over $4 billion in new long-term gas contracts in the first half of 2025, boosting its total contracted revenues to about $20 billion over the next 20 years.

Meanwhile, crude oil prices slipped as U.S. demand concerns outweighed supply risks. Brent fell 0.1% to $67.41 a barrel, while WTI dipped 0.2% to $63.57. U.S. crude inventories jumped by 3.9 million barrels last week, with gasoline stocks also rising unexpectedly, raising fresh concerns about weakening demand in the world’s largest energy consumer.