European Stocks Decline Amid ECB Rate Decision Anticipation and Trade Tensions

European stocks slipped on Thursday, April 17, 2025, as investors awaited the European Central Bank’s decision on interest rates, amid growing concerns over U.S. President Donald Trump’s unpredictable trade policies.

The STOXX 600 index fell by 0.5%, though it remains on track to post a 4% weekly gain, buoyed by hopes that the ECB may lower interest rates

Luxury goods stocks such as Hermès and LVMH declined after reporting quarterly sales that missed expectations, dampening investor confidence in the high-end retail sector

On the other hand, shares in Germany’s Siemens Energy rose by 10.5% after the company raised its forecast for the current fiscal year, benefiting from a record profit margin since its spin-off from Siemens.

Investors widely expect the ECB to announce a 25 basis point rate cut later today in a bid to support the struggling economy amid persistent trade uncertainty

These developments come at a sensitive time, as markets prepare for an extended Easter weekend, with Good Friday and Easter Sunday ahead—prompting greater investor caution in making significant moves

Amid this backdrop, one question lingers: Can the European economy weather these challenges and regain momentum in the markets