(Bloomberg) -- European stocks rose Thursday, holding on to their gains as the European Central Bank left interest rates unchanged as expected.
The Stoxx 600 was up 0.5 per cent by 1:27 p.m. in London, led by the auto and media sectors. Travel and leisure stocks were the biggest laggards after United Airlines Holdings Inc.’s results missed investor expectations. Technology shares steadied after Wednesday’s slump prompted by concerns over the prospect of more severe U.S. restrictions on the sector.
The ECB held rates at its meeting Thursday after last month’s landmark cut and gave away little on its plans as investors and economists bet on another move in September. President Christine Lagarde will address journalists at 2:45 p.m. in Frankfurt.
“The ECB must adapt to the changing political conditions in the euro area,” said Guillermo Hernandez Sampere, head of trading at asset manager MPPM. “A further rate cut this year is very likely as markets will face major challenges if the global situation maintains the current dynamics.”
Sentiment toward the tech sector recovered somewhat after Taiwan Semiconductor Manufacturing Co.’s positive earnings update. The world’s largest maker of advanced chips beat lofty analyst estimates, thanks to growing AI investment around the world.
Meanwhile, European earnings continued to roll in. Volvo AB rose after it reported better-than-expected profits for the second quarter. Nokia Oyj slumped as sales missed analyst estimates in the second quarter. Publicis SA rose after the advertising agency boosted full-year organic sales growth guidance.
Investors have also been following China’s Third Plenum, the country’s Communist Party meeting. President Xi Jinping said in a statement the country will push ahead with its pursuit of high-quality development.
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