European shares rise as traders await ECB By Reuters

(Reuters) – European shares rose on Thursday as investors braced for an interest rate cut from the European Central Bank and awaited hints on policy moves next year as the euro zone economy grapples with slowing growth and heightened political risks.

The pan-European index was up 0.1% by 08:14 GMT, for 10 of the last 11 sessions. Economically sensitive sectors such as oil and gas, automotive and mining led the morning’s gains.

The ECB is almost certain to cut rates again, with traders 83% chance of a 25 basis point cut, as euro zone inflation is almost back on target and the economy falters.

Some analysts are also discussing the possibility of a major 50 bps cut, with the odds of such a move at 16%. The ECB’s rate decision is due at 13:15 GMT.

The Swiss National Bank (SNB) is expected to announce its rate decision at 08:30 GMT, with recent market prices pushing for a larger cut of 50 basis points, given weak Swiss inflation and the SNB’s aversion to a strengthening Swiss franc .

In terms of shares, SThree Plc fell 35% after the British recruiter warned on profit for the current financial year, citing tough conditions in the job market amid heightened political and macroeconomic uncertainty, particularly in Europe.

Swiss drugmaker Lonza rose 6.3% after confirming its full-year guidance.