European Stocks Steady Ahead of ECB Rate Decision Amid Inflation Concerns

European stock markets were relatively steady on Thursday ahead of a highly anticipated decision from the European Central Bank (ECB). The UK's FTSE 100, Germany's DAX, and France's CAC all saw modest gains, with the UKX rising 0.11%, the DAX up 0.08%, and the CAC increasing by 0.23%. Meanwhile, Slovakia's construction output rose by 2.3% year-over-year in July, while Austria's industrial production fell by 1.1% over the same period.

Sweden's total industrial orders declined 0.5% year-over-year in July, but its industrial production rose by 0.2% year-over-year during that time. In Denmark, the annual inflation rate reached 2% in August. Finland's industrial production increased by a notable 4.5% year-over-year in July.

The pan-European Stoxx 600 edged down 0.25% to 648.3 as investors waited for the ECB's decision on interest rates. The central bank is expected to raise its key interest rate by 25 basis points, following a similar hike since the US-Iran conflict began. This move could signal caution regarding further increases that might impact economic activity.

Oil prices remain elevated, with Brent crude holding above $100 per barrel after recent attacks involving Iran and the US pushed prices through this critical threshold on Wednesday. The U.S. bond yield was down less than 1 basis point to 4.84%, while the UK's 10-year yield fell by 2 basis points to 5.25%. Germany's 10-year yield decreased by 1 basis point to 3.43%.