European stocks rose on Thursday after the European Central Bank (ECB) cut interest rates for the eighth time in just over a year, lowering borrowing costs to 2%. This move, combined with weaker U.S. economic data, which triggered a rally in government bonds, boosted optimism in markets.

While Germany's industrial orders unexpectedly rose, the ECB downgraded its forecasts for both growth and inflation, reinforcing concerns over economic momentum. Despite the ECB’s rate cut, euro and bond markets remained stable, as the decision had been widely anticipated due to eurozone inflation nearing the 2% target.

Analysts like Oxford Economics' Oliver Rakau noted that ECB President Christine Lagarde may adopt a cautious tone about future rate cuts, especially amid uncertainty over U.S. trade policy and emerging German fiscal stimulus. A sudden U.S. trade deal could significantly change the outlook.

Meanwhile, in the U.S., Treasury yields dropped sharply, marking the biggest fall since February, following disappointing jobs and services data. This reinforced concerns that trade tensions are hurting the economy.

On the global stage:

• Asia-Pacific shares rose, driven by optimism in South Korea and Hong Kong.

• U.S. tariffs on steel and aluminum imports took effect, impacting Canada and Mexico.

• Trade negotiations continued, with Japan and Germany sending representatives to Washington.

In other markets:

• The U.S. dollar stabilized after a recent drop.

• Gold prices dipped slightly, and oil prices steadied, influenced by trade outlook and Saudi pricing decisions.