June 5 (Reuters) - European shares traded slightly higher on Thursday, supported by strength in automakers and industrial metal miners as investors awaited the European Central Bank's policy decision.

The pan-European STOXX 600 index edged 0.2% higher by 0704 GMT, extending gains from the previous session after Germany's approval of a tax relief package lifted investor sentiment.

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Investors remained cautious ahead of the ECB meeting later in the day, where a 25-basis-point interest rate cut is widely expected.

Industrial metal miners (.SXPP) , opens new tab gained 0.6%, supported by firm copper prices, while automakers (.SXAP) , opens new tab rebounded 0.5%, recovering from losses in the previous session.

Trade uncertainty remained unresolved as U.S. President Donald Trump's deadline for countries to present their improved trade negotiations passed without any concrete developments.

A defence spending commitment of 5% of GDP across the NATO alliance will happen, U.S. Defense Secretary Pete Hegseth told reporters in Brussels ahead of a NATO defence ministers' meeting.

Defence stocks in the bloc were broadly lower, with the index (.SXPARO) , opens new tab down 0.3%.

Among stocks, Eutelsat (ETL.PA) , opens new tab fell 13% after South Korea's Hanwha Systems (272210.KS) , opens new tab offered to sell its entire 5.4% stake in the company for about 78 million euros ($85 million).

Shares of London-listed Wizz Air (WIZZ.L) , opens new tab plunged 22% after the budget carrier reported an annual operating profit that came in below analysts' expectations.

https://www.reuters.com/markets/europe/european-shares-edge-higher-ahead-ecb-policy-decision-2025-06-05/