European Markets React to ECB's Inflation Stance

European stock markets mostly closed lower on Thursday, influenced by the European Central Bank's (ECB) cautious stance on inflation forecasts and future interest rate decisions. The latest report on Eurozone consumer confidence did little to sway market expectations, leading to a mixed day for major indexes.

The DAX index fell by 1.13%, with Zalando SE leading the drop by 4.05%. Similarly, the CAC 40 decreased by 0.66%, significantly impacted by Stellantis NV's 5.62% plunge. The Euro Stoxx 50 wasn't spared, declining by 1.16%, as Ferrari S.p.A. saw a sharp 7.91% drop. In contrast, the FTSE 100 managed a 0.23% increase, buoyed by a 15.18% surge in Rolls-Royce Holdings PLC shares ahead of a key meeting between the British Prime Minister and the US President.

Currency markets also felt the pressure, with the euro and pound sterling losing 0.78% and 0.42% against the US dollar, respectively, by late afternoon.