Stocks Mostly Fall as Investors Await Key Interest Rate Decisions

European markets edge lower ahead of ECB and Bank of England policy announcements

Published on Feb. 5, 2026

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European stocks edged lower on Thursday, losing ground against Wednesday's flat close, as investors digest a slew of earnings results and await key interest rate decisions from the European Central Bank and Bank of England. The technology sector was leading the Stoxx 600 index higher, while mining and real estate weighed. Focus will be on the ECB and BoE policy announcements, with analysts expecting no changes to rates in the near term despite concerns over eurozone inflation and the impact of the weak dollar.

Why it matters

The interest rate decisions from the ECB and BoE will be closely watched by investors as they look for clues on the future direction of monetary policy in the eurozone and UK. Any shifts in policy could have significant implications for financial markets and the broader economy.

The details

European stocks slipped in early trading, with the DAX and FTSE 100 dragged lower by the energy and utilities sectors, while the CAC 40 was supported by financial stocks. The technology sector was the best performer on the Stoxx 600. Investors are focused on the ECB and BoE policy announcements later Thursday, with the ECB expected to hold rates steady despite concerns over eurozone inflation and the impact of the weak dollar. The Bank of England is also expected to keep rates unchanged. German manufacturing orders unexpectedly jumped in December, providing a positive signal ahead of the policy decisions.

  • The ECB and Bank of England are set to publish their interest rate policies later on Thursday.

The players

European Central Bank

The central bank of the 19 European Union countries that have adopted the euro as their currency.

Bank of England

The central bank of the United Kingdom.

Christine Lagarde

The president of the European Central Bank.

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What’s next

The ECB and Bank of England policy decisions will be closely watched by investors for any clues on the future direction of monetary policy in the eurozone and UK.

The takeaway

European markets are treading cautiously ahead of the key interest rate decisions from the ECB and Bank of England, as investors look for signs of how policymakers will navigate concerns over inflation and the impact of the weak dollar on the economy.