European stocks closed in positive territory on Thursday, with investors weighing the European Central Bank’s latest policy decision alongside fresh U.S. inflation numbers. Germany’s DAX rose 0.3 percent, France’s CAC 40 gained 0.9 percent, and London’s FTSE 100 advanced 0.8 percent.

The spotlight was on Frankfurt, where the ECB wrapped up its policy meeting. As expected, policymakers left interest rates unchanged. Inflation is now close to the bank’s two percent target, but the uncertain economic outlook and political risks mean further cuts could still be possible. The ECB had previously lowered its key deposit rate to two percent in June, after slashing it from a record four percent within a year.

Attention also turned to the U.S. ahead of next week’s Federal Reserve meeting. Inflation figures for August showed consumer prices rising 2.9 percent year over year, up from 2.7 percent in July and exactly in line with forecasts. Every month, inflation climbed 0.4 percent, faster than the 0.2 percent seen in July and slightly above expectations of 0.3 percent. The numbers are likely to reinforce expectations that the Fed will cut rates at its September 17 meeting.

On the corporate side, Energean Oil & Gas said it had signed more than $4 billion worth of new long-term gas contracts in the first half of 2025. The deals lift its total contracted revenues to around $20 billion over the next 20 years.

Oil prices, meanwhile, slipped after a strong rally earlier in the week. Brent crude fell 1.7 percent to $66.33 a barrel, while U.S. West Texas Intermediate dropped 1.9 percent to $62.44. The weakness followed data showing U.S. crude stockpiles rose by 3.9 million barrels last week, compared to expectations of a 1 million barrel draw. Gasoline inventories also increased by 1.5 million barrels, against forecasts for a decline.

The surprise build in inventories fueled concerns that demand in the U.S., the world’s top oil consumer, could soften in the coming months. Still, supply risks in Russia and the Middle East kept prices supported earlier this week, with both benchmarks gaining more than a dollar a barrel on Wednesday.