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ECB cuts interest rate by 25 bps

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SAP gains on CEO comments

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Novo Nordisk hits fresh record high

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Technology stocks at near 24-year high

(Updated at 1300 GMT)

By Shristi Achar A

June 6 (Reuters) - European shares pared gains on

Thursday after the European Central Bank (ECB) delivered a

widely expected interest rate cut but provided no outlook for

future moves.

The pan-European STOXX 600 was up 0.5% as of 1300

GMT, off its three-week high hit earlier in the session,

supported by financial and healthcare stocks.

The ECB cut borrowing costs by 25 basis points to 3.75% from

its record-high 4%, acknowledging progress in its battle against

high inflation but also signalling that the fight was still on.

"The detail that's already been communicated is the ECB is

not pre-committing itself to any particular rate path, so that

seems to be one of the things that is offsetting the market a

little bit," said Peter Garnry, head of Saxo Strats at Saxo

Bank.

Bond yields across the board rose after the decision, while

money markets are now pricing in 35 bps of cuts by the ECB this

year, on top of today's move, as per LSEG data.

Markets also digested remarks from ECB President Christine

Lagarde to ascertain the monetary policy trajectory, given the

recent uptick in inflation.

Utility stocks were the biggest drag, down 1%,

while real estate turned negative after the decision,

falling 0.6%.

European lenders led sectoral gains, rising

1.3%, while healthcare was another boost, advancing 1.2%

as Novo Nordisk rose 3.3% to hit a record high.

Technology stocks trimmed some gains and were last

up 1.2%, holding near its highest since December 2000.

German enterprise software giant SAP rose 4%,

lifting the sector, after CEO Christian Klein gave encouraging

guidance for 2026 and 2027. The stock topped Germany's DAX 40

, which was up 0.5%.

Dutch semiconductor firm ASML also extended its

gains from Wednesday, rising 1.3%.

Remy Cointreau edged up 1% after the French cognac

maker reported a smaller-than-expected drop in its annual profit

and predicted a recovery over the coming year.

Nemetschek advanced 5.2% as the German software

developer agreed to buy U.S. software provider GoCanvas.

On the data front, euro zone retail sales fell more than

anticipated in April, declining 0.5% against expectations of a

0.3% decline.