European markets hold steady ahead of ECB decision: STOXX 600 flat, Telecom sector down 1.3%

European markets opened cautiously on Thursday, with investors holding their breath ahead of key decisions from the European Central Bank (ECB) and statements from president Christine Lagarde regarding potential interest rate adjustments.

The STOXX 600, representing companies across Europe, remained largely unchanged as of 0720 GMT, showing a slight 1.3% decrease in the telecommunications sector.

All eyes are on the ECB’s upcoming announcement at 1215 GMT. While it’s expected that the central bank will maintain current interest rates, the focus will be on any indications of a possible rate cut in June. This speculation stems from concerns about subdued economic growth and easing price pressures.

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Sectors sensitive to interest rate changes, such as real estate, saw a modest 0.2% increase, while financial sectors experienced a slight 0.1% decline.

In notable market movements, Societe Generale shares surged by 3.4% following the French bank’s announcement of a 1.1 billion euro ($1.18 billion) deal to sell its professional equipment financing arm to competitor BPCE. This move is part of Societe Generale’s broader strategy to divest certain assets.