European Stocks Edge Up Amid Stimulus Hopes and Fed Rate Cut Speculations

European stocks saw a slight increase on Thursday, mirroring Asian markets' optimism over potential Chinese stimulus measures. Investors awaited U.S. inflation data to gauge the Federal Reserve's next moves, while GSK and Givaudan stocks saw gains amid sector fluctuations.

European stock markets edged higher on Thursday, following the positive lead set by Asian markets due to hopes for increased stimulus measures from China. Investors are eagerly awaiting U.S. inflation figures, which could provide guidance on the Federal Reserve's future actions regarding interest rate adjustments.

The pan-European STOXX 600 index saw a modest rise of 0.1% around 0713 GMT, driven primarily by the healthcare and telecom sectors, which were able to offset losses in technology stocks. U.S. markets also experienced a lift, with Wall Street reaching record highs as the Federal Reserve's September meeting minutes revealed strong support among officials for a half-point rate cut.

Market participants are focusing on U.S. consumer price data set to be released later in the day, which could influence decisions around prospective rate cuts this year. Investors are largely anticipating a smaller 25 basis points rate cut next month. Additionally, shares of the British pharmaceutical company GSK surged by approximately 6% after it announced a $2.2 billion settlement regarding past lawsuits over its heartburn drug Zantac. Meanwhile, BMW's shares dipped following a reported decrease in third-quarter sales, notably impacted by weaker performance in China.

(With inputs from agencies.)