On Thursday, Frankfurt’s DAX 40 index found stability around 25,550 points, remaining close to its lowest mark since late July. This stabilisation coincided with a pause in the recent rally of oil prices, as investors positioned themselves in anticipation of the European Central Bank’s policy decision later in the day.

Markets have fully priced in a 25-basis-point interest-rate hike, which would represent the ECB’s second increase this year and elevate the key deposit rate to 2.50%. With the move largely anticipated, investors are instead focusing on the ECB’s updated economic forecasts and President Christine Lagarde’s press conference for further insights on the future trajectory of monetary policy.

Markets currently anticipate two rate increases this year, with the deposit rate expected to approach approximately 3.1% by the end of 2027. Among individual stocks, RWE increased by 1.7%, Porsche AG by 1.0%, DHL by 0.8%, and MTU Aero Engines by 0.4%, buoyed by favourable remarks from US investment bank JPMorgan.