PARIS: European shares were subdued on Thursday as investors steered clear of risky bets ahead of a widely expected pause in interest rate hikes from the European Central Bank, while Nokia’s shares topped the index after a quarterly profit beat.

The pan-European STOXX 600 was down 0.1% by 0915 GMT after jumping more than 1% in the previous session. The ECB’s rate verdict is due at 1315 GMT, with markets expecting a pause at the current 4% level, although the central bank is likely to push back on bets of aggressive policy easing this spring. The decision will be followed by ECB President Christine Lagarde’s press conference, scheduled for 1345 GMT, with traders looking out for clues on the timing of rate cuts.

Markets are pricing in nearly 130 basis points (bps) of cuts this year, down from around 150 bps around two weeks ago. “Investors will be highly attuned to the latest assessment of inflation and growth prospects from President Christine Lagarde,” Susannah Streeter, head of money and markets at Hargreaves Lansdown, said in a note.

“Even though there is has been a rapid slowdown in price increases and weakness is pervading economies, the ECB is concerned that underlying price pressures in services remain strong.”