European stocks rose on Thursday after the ECB delivered its eighth interest rate cut in a year. The ECB lowered borrowing costs by 25 basis points and revised its inflation forecasts downward for both 2025 and 2026. While the rate cut had been largely priced in, the sharper-than-expected downward revision to the 2026 inflation outlook caught some market participants by surprise. ECB President Lagarde acknowledged that the inflation outlook remains more uncertain than usual. Also supporting sentiment was news of a phone call between US President Trump and China’s President Xi, suggesting progress in trade talks. In economic news, German factory orders unexpectedly rose in April, defying expectations for a decline. On the corporate side, shares of British fintech company Wise jumped 7.1% after reporting full-year earnings and announcing plans to shift its primary stock listing from London to New York, a move highlighting ongoing concerns about the attractiveness of UK capital markets.