European Stocks Edge Up on Falling Oil Prices and Softer ECB Odds

European stocks rose slightly on Thursday as falling oil prices and softer expectations for an October European Central Bank (ECB) hike boosted sentiment. The Stoxx Europe 600 index added 0.3% by 3:16 p.m. in London, with chipmaker ASML Holding NV leading the way, up 4%. Energy stocks declined after Brent crude slipped below $105 a barrel.

The drop in oil prices was tied to the resumption of flows via a key pipeline in Saudi Arabia, and while Iranian officials remain pessimistic about a deal before the US midterm elections, an end to the conflict in the Middle East still seems unlikely. The European Central Bank's October meeting odds have also cooled, with investors now assigning a 31% probability to an increase.

Banks were among the biggest gainers, with Julius Baer Group Ltd. shares rising as much as 9% after the Swiss watchdog Finma concluded its enforcement process. Meanwhile, Chocoladefabriken Lindt & Spruengli AG fell 7.5% after trimming its sales-growth outlook for the second time this year.