Investing.com - European equity indices moved in narrow ranges Thursday, amid cautious trading as investors digested more corporate earnings ahead of the latest European Central Bank policy-setting meeting.
At 03:15 ET (07:15 GMT), the DAX index in Germany climbed 0.4%, while the CAC 40 in France slipped 0.2% and the FTSE 100 in the U.K. fell 0.2%.
The pan-Europe Stoxx 600 index fell 0.3%.
ECB expected to cut rates
In Frankfurt later in the session, the European Central Bank holds a policy-setting meeting, and is expected to cut interest rates for the seventh time in a year to prop up a struggling economy.
"Consensus is unanimous, and markets are fully pricing in the move," said analysts at ING, in a note.
"We don’t expect much in terms of guidance by the ECB," the bank added, "policymakers are as confused as markets on the tariff impact, and they are not able to offer any forward-looking view at this stage."
Data released earlier Thursday showed that German producer prices fell in March, decreasing by 0.2% on the year, pointing to weak inflationary pressures in the eurozone’s largest economy.
Eurozone inflation drew just 2.2% on an annual basis in March, according to numbers released Wednesday.
Tariff negotiations
Investors will also have noted that the Japanese trade delegation is visiting Washington, with the two nations opening talks in an attempt to reach a bilateral trade deal amid growing concerns over the economic fallout from U.S. tariffs.
U.S. President Donald Trump said “big progress” was made during the meeting, with Japan the first major trading partner to negotiate directly with the United States - a test case for the large number of nations seeking better terms on the sweeping U.S. tariffs.
The European Union has called U.S. tariffs unjustified and damaging, but President Ursula von der Leyen has indicated that the group wants “to give negotiations a chance.”
Pernod Ricard posts drop in quarterly sales
In the corporate sector, Pernod Ricard (EPA: PERP ) reported a 3% decline in third-quarter sales, with the French spirits maker missing forecasts as tariff uncertainty rocked the already-struggling sector.
Hermes (EPA: HRMS ) reported a 7% rise in first quarter sales, slightly missing expectations in a rare show of weakness in the French luxury fashion house’s top line segment for handbags and fashion items amid a choppy economic environment.
ABB (ST: ABB ) posted a 22% rise in profit in the first quarter of 2025, with the Swedish-Swiss engineering corporation supported by higher orders, solid margin gains, and a strategic push to restructure its portfolio, including plans to spin off its Robotics division next year.
J. Sainsbury (LON: SBRY ) reported a 7.2% rise in annual profit, but the U.K. supermarket group forecast little or no growth in its new financial year as it faces a jump in costs and a step up in competition.
Elsewhere, Taiwan Semiconductor Manufacturing (NYSE: TSM ), the world’s largest contract chipmaker, reported a 60% jump in first-quarter net income on robust demand for advanced chips.
Crude set for weekly gain
Oil prices rose Thursday, on course for weekly gains, driven by supply disruption concerns after the U.S. imposed new sanctions on Iran’s oil exports.
At 03:15 ET, Brent futures climbed 0.6% to $66.21 a barrel, and U.S. West Texas Intermediate crude futures rose 0.7% to $62.92 a barrel.
Both benchmarks closed at their highest levels for two weeks on Wednesday, and are on track for their first weekly rise in three. Thursday is the last settlement day of the week ahead of the Easter holidays.
President Donald Trump’s administration escalated its sanctions against Iran’s oil sector by targeting Chinese entities, including a refinery in Shandong province.
Big draws on U.S. gasoline and distillates stocks and a smaller-than-expected gain in weekly crude inventories also bolstered markets.