European shares snap four-day losing streak as investors weigh ECB rate hike

European shares rose on Thursday, snapping a four-day losing streak as investors weighed the ECB’s rate decision against broader geopolitical tensions. The European Central Bank hiked borrowing costs by 25 basis points, its first increase in nearly three years, while lifting inflation projections and trimming growth forecasts amid pressure from the Middle East conflict. Traders expect further tightening, with LSEG data showing bets on an additional 25-basis-point rise by year-end. The STOXX 600 finished about 0.5% higher at 621.53 points, with gains in some segments offsetting declines in rate-sensitive financials. Amidst the headlines, markets maintained a cautious but constructive tone as rate paths dominated the narrative.