European shares edge higher ahead of ECB rate verdict; Middle East tensions eyed
Published Thu, Jun 11, 2026 · 04:10 PM
EUROPEAN shares inched higher in choppy trading on Thursday (Jun 11), with escalating tensions in the Middle East keeping investors cautious ahead of the European Central Bank’s interest rate outlook later in the day.
The pan-European Stoxx 600 index edged 0.3 per cent higher to 620.24 points by 0717 GMT. Crude prices were near US$95 a barrel as fresh airstrikes by the US and Iran added to traders’ concern over energy supplies, with no signs of the Strait of Hormuz, a critical global oil shipping route, reopening soon.
Energy cost-sensitive travel and leisure stocks were among top sectoral decliners, with easyJet and Lufthansa down 1.7 per cent and 0.5 per cent, respectively.
Offsetting some of those concerns, Wizz Air reported annual profit above estimates, sending shares up 4.6 per cent. However, the carrier did not provide a forecast for fiscal 2027, citing an uncertain outlook.
Dealmaking news was also on the radar as Hugo Boss rose 6.4 per cent after the UK’s Frasers Group launched a 2 billion-euro (S$3 billion) takeover offer for the struggling German fashion brand.
Chip stocks such as BE Semiconductor and ASM International gained 4.2 per cent and 4.8 per cent. The broader tech has seen some volatility since late last week as AI stocks globally have paused from a strong rally over the past two months.
Focus will shift later in the day to the ECB’s monetary policy decision, with traders pricing in a 25-basis-point rate hike, according to LSEG-compiled data.
Greater attention will be paid to the central bank’s monetary policy path, given the repercussions of the oil shock on the economy. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
