The pan-European STOXX 600 index closed 0.3 per cent lower, while France’s CAC 40 rose 0.4 per cent, Italy’s FTSE MIB added 0.2 per cent, and Spain’s IBEX 35 was 0.1 per cent lower

European equities were mixed on Thursday after a hawkish U.S. central bank rate hold outweighed the geopolitical relief of a newly signed Iran-U.S. peace deal.

The pan-European STOXX 600 index closed 0.3 per cent lower, while France’s CAC 40 rose 0.4 per cent, Italy’s FTSE MIB added 0.2 per cent, and Spain’s IBEX 35 was 0.1 per cent lower. Germany’s DAX rose 0.4 per cent.

The mixed reaction underscores a transatlantic market whiplash. Investors were initially primed for the relief rally to continue after U.S. president signed a fragile truce with Iran, sending crude prices sliding.

That higher-for-longer anxiety, compounded by tumbling oil prices, ultimately left Europe’s major indexes struggling for a footing. Energy titans BP Plc and TotalEnergies SE dragged heavily on the FTSE 100 and CAC 40 as Brent crude flirted was around key support levels.

Britain’s FTSE 100 dropped 1 per cent and displayed little reaction to the Bank of England holding rates steady.

At least four officials from the European Central Bank, including Chief Economist Philip Lane, are due to speak later in the day, and markets will be glued to any hints on the bloc’s future rate path.

Among individual stocks, the UK’s Tesco dropped 2.5 per cent after the food retailer posted a slowdown in sales growth.

Stellantis NV shares declined 5.7 per cent after the automaker unveiled a new version of its Compact Van family through its commercial vehicles business unit, Stellantis Pro One.

Edenred SA climbed nearly 15 per cent after reports said BC Partners was weighing a takeover of the voucher company.

Informa added 2 per cent after signalling stronger growth.