(Reuters) – European stocks rose on Thursday as investors awaited a European Central Bank cut in interest rates and looked for hints about political moves next year, with the euro zone economy suffering from slowing growth and increasing political risks.
By 0814 GMT, the European index rose 0.1 percent, rising in ten of the past 11 sessions. Economically sensitive sectors such as oil and gas, automobiles and mining led the morning gains.
The European Central Bank is certain to cut interest rates again, with traders anticipating an 83% chance of a 25 basis point cut, as euro zone inflation is almost back on target and the economy falters.
Some analysts are also discussing the possibility of a significant 50 basis point cut, with the odds of such a move at 16%. The European Central Bank is scheduled to issue its interest rate decision at 1315 GMT.
The Swiss National Bank is expected to announce its interest rate decision at 0830 GMT, with recent market rates pushing towards a further 50 basis point cut, given weak Swiss inflation and the SNB's aversion to strengthening the Swiss franc.
Among stocks, SThree Plc fell 35% after the British recruitment company warned of earnings for the current financial year, citing difficult recruitment market conditions amid growing political and macroeconomic uncertainty, especially in Europe.
Shares of the Swiss pharmaceutical company Lonza rose 6.3 percent after it confirmed its forecasts for the full year.
