The Stoxx Europe 600 index gained 0.7%, while London's FTSE 100 edged up by 0.2%. The Bank of England is expected to follow the ECB's lead in its upcoming meeting.

The markets were also helped by the rate cut announced by the Bank of Canada yesterday. It pointed out that this cut (from 5 to 4.75%) would be the first of a longer easing cycle.

In corporate news, John Wood Group surged 10% after announcing engagement with Sidara on a takeover proposal. Antofagasta also rose following a $1.5 billion investment deal to improve water supply at its Chilean mining operations. Vodafone Group and National Grid were among the top losers as they traded without entitlement to their latest dividend payouts.

Mitie Group reported a rise in revenue and profit for the year ended March 31. Fevertree Drinks reiterated its forecast for the year, anticipating strong summer trading. Bridgepoint named Tim Score as its new chair, effective July 1.

Investors will also be focusing today on eurozone construction PMI, retail sales, and Germany's factory orders. Ireland is set to release unemployment data. In the U.S., we also have trade balance figures and initial jobless claims.

Things to read today:

A cautious revival of the London IPO market (Financial Times)

How Apple Fell Behind in the AI Arms Race (WSJ)

ECB’s Inflation Challenge Looks More and More Like the Fed’s (Bloomberg)