12:20 PM EDT, 06/05/2025 (MT Newswires) -- The European stock markets closed mostly higher in Thursday trading as the FTSE 100 in London gained 0.11%, Germany's DAX increased 0.20%, the Stoxx Europe 600 rose 0.17%, the Swiss Market Index advanced 0.16%, while France's CAC 40 lost 0.18%.

The European Central Bank reduced its key rates by another 25 basis points, which is consistent with the consensus estimate and marks its eighth rate cut in a year.

Effective June 11, the deposit facility rate will go down to 2% from 2.25%, while the interest rates on main refinancing operations and marginal lending facility will fall to 2.15% and 2.4%, respectively.

The eurozone producer price index rose by 0.7% year-on-year in April, and climbed by 0.6% in the broader European Union, according to Eurostat.

In Germany, Europe's largest economy, monthly factory orders gained 0.6% in April after the revised 3.4% increase in March, based on preliminary data from the country's Federal Statistical Office. Analysts expected a 1% decrease for the month.

In corporate news, Bayer's phase two trial showed that combining finerenone and the SGLT-2 inhibitor empagliflozin led to significantly greater reductions in a key marker of kidney damage in patients with chronic kidney disease associated with type 2 diabetes.

The German biopharmaceutical company was the top performer on the DAX, closing 4% higher.

Leading the decliners on the DAX was Airbus, which closed over 2% lower after Citi downgraded the plane manufacturer to neutral from buy and cut its price target to 183 euros ($209) from 209 euros.

Money transfer company Wise said it plans to shift its primary stock listing to the US while retaining a secondary listing in London, aiming to tap into deeper capital markets and boost its profile in its largest growth market.