European Equities Close Higher in Thursday Trading; European Central Bank Cuts Rates by 25 Basis Points

European stock markets closed higher in Thursday trading as the Stoxx Europe 600 rose 0.78%, the Swiss Market Index gained 0.50%, France's CAC increased 0.52%, the FTSE in London was up 0.57%, and Germany's DAX closed 1.03% higher.

The European Central Bank reduced its deposit facility rate by 25 basis points to 3.5% Thursday, which is inline with forecasts, according to Bloomberg. ECB President Christine Lagarde said the cut was made "based on our updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission."

Lagarde also said the ECB expects headline inflation to average 2.5% in 2024, 2.2% in 2025, and 1.9% in 2026.

In corporate news, Finnish telecommunications company Nokia has approached potential candidates about replacing Pekka Lundmark as chief executive, the Financial Times reported Thursday, citing people familiar with the situation. "The board fully supports President and CEO Pekka Lundmark and is not undergoing a process to replace him," a Nokia spokesperson told MT Newswires in an e-mailed statement.

European automaker Stellantis' US dealer network criticized Chief Executive Carlos Tavares for the "rapid degradation" of their brands due to his "short-term decision making," an open letter dated Tuesday from the national dealer council showed. Stellantis did not immediately respond to MT Newswires' request for comment.

Swiss financial services company UBS's asset management unit has been reducing its exposure to corporate bonds during market rallies over fears that a slowing economy or the US elections could lead to volatility, Reuters reported, citing Jonathan Gregory, head of fixed income UK at UBS.

French pharmaceutical company Sanofi said Thursday it has signed a licensing agreement with RadioMedix and Orano Med to focus on AlphaMedix, which is being evaluated to treat adults with unresectable or metastatic, progressive somatostatin-receptor expressing neuroendocrine tumors.

And British pharmaceutical company GSK reported "positive headline results" Thursday from a phase 2 trial of its seasonal influenza vaccine. The vaccine program will soon begin late-stage clinical development, the company said.