ECB decision at 1315 GMT
SNB cuts rates by 50 bps
Lonza up on plans to exit CHU business

Dec 12 Reuters European stocks dipped on Thursday, as investors braced for a rate cut from the European Central Bank and awaited hints on policy moves next year as the euro zone economy struggles with slowing growth and heightened political risks.

After a positive open, the panEuropean STOXX 600 index slipped 0.1. Retail stocks lagged, while automakers led gains.

Ratesensitive euro zone bank shares rose 0.4.

The ECB is expected to cut interest rates again, with traders pricing in an 81 chance of a 25 bps reduction and a 19 chance of a 50 bps cut, as euro zone inflation nears target and the economy falters. The ECB39;s rate decision is due at 1315 GMT.

Meanwhile, Swiss stocks got a lift after the Swiss National Bank cut its interest rate by 50 basis points, the biggest reduction in almost 10 years, as it sought to stay ahead of expected cuts by other central banks and cap the rise of the Swiss franc.

In Europe, they39;re probably cutting rates too slowly. The economies are slowing and the central banks are really trying to catch up while in the U.S., we see more preemptive policy cuts, said Marija Veitmane, head of equity research at State Street Global Markets.

That39;s what we see in financial markets as well, U.S. stocks are outperforming European, the dollar is rallying.

While the STOXX 600 is trading below alltime highs, it is up just 8.5 on a yeartodate basis,…