Traders grew more confident on Thursday that the European Central Bank would deliver three more rate cuts this year, as weak growth data followed by the bank's latest rate reduction highlighted the need for more easing.

The Fed will likely be on a more hawkish path, so significant divergence from the ECB could risk flight of capital towards the Dollar.”

European stocks were climbing on Thursday as the expectation that the European Central Bank will cut interest rates later helped investors shrug off below-par economic data. The ECB appears all-but-certain to lower borrowing costs when it announces its latest decision at 8.

Wall Street shares looked set for more gains on Thursday, as investors cheered earnings from Meta, but shunned Microsoft, while the dollar was steady against most other currencies after the Federal Reserve left rates unchanged.