ECB Rate Hike Looms as European Stocks Trade Sideways

European stocks were flat on Thursday as investors awaited an interest rate hike from the European Central Bank. The pan-European STOXX 600 was steady at 639.79 points, with most regional markets trading in tight ranges.

The ECB is expected to deliver a 25-basis-point rate hike to 2.5% and signal that it's ready to tighten further if the inflation outlook doesn't improve. Financial markets are pricing in one more rate hike later this year, followed by another one or two moves next year.

Susannah Streeter, chief investment strategist at Wealth Club, said 'It's going to be the outlook that will be watched closely, whether this will follow a wait-and-see stance or whether there could be another hike.'

Oil prices eased on Thursday but Brent crude remained above $100 a barrel. The European Energy sector gained 0.3% as oil prices remained elevated.