Europe midday: Stoxx hits fresh high ahead of ECB decision

(Sharecast News) - European shares hit fresh highs on Thursday with all eyes were on the European Central Bank for a widely-expected cut in interest rates. The pan-regional Stoxx 600 index was up 0.80% at 525.40, having hit a new-intra-day record of 525.54. All major bourses on the continent followed suit.

A cut from the ECB would be the first in almost five years. Traders will be looking for any comments from the central bank on the future trajectory of policy given last Friday's unexpected rise in consumer prices.

The Bank of Canada on Wednesday became the first in the G7 to do so, and markets are also increasing bets on cuts from the US Federal Reserve this year.

"The likelihood of the Fed lowering borrowing costs in September is now at 69%, following weaker jobs data, which has helped the price of Brent crude rise above $79. That said, the price remains subdued overall, as demand concerns related to slowing economies remain front and centre," said Hargreaves Lansdown analyst Sophie Lund Yates.

US stocks surged overnight, driven by tech giant Nvidia as passed a market capitalisation of more than $3trln, surpassing Apple to be second to Microsoft.

In economic news, eurozone construction activity remained in a steep slump during May, according to the latest PMI survey data, as new orders continued to fall sharply. The downturn led to the quickest drop in construction jobs in four years, while purchases and subcontractor use also decreased markedly.

The HCOB eurozone construction PMI total activity index stayed well below the 50.0 no-change threshold in May, indicating a marked contraction in output across the euro area construction sector. At 42.9, the index was up slightly from 41.9 in April, but was still one of its lowest readings in the past 11 years.

In equity news, Danish pharmaceuticals giant Novo Nordisk jumped to a record high amid continued demand for its blockbuster Wegovy weight loss drugs.

Reporting by Frank Prenesti for Sharecast.com