European markets closed higher on Thursday as oil prices dipped, following a tentative ceasefire agreement between Israel and Lebanon. However, geopolitical tensions remained high, casting doubt on the potential for a long-lasting peace initiative.
Investors were cautiously optimistic, driving the pan-European STOXX 600 index up by 0.5% to 624.45 points, with the healthcare sector showing significant gains. Yet, the ongoing shutdown of the strategic Strait of Hormuz continued to pose challenges to global oil shipments.
Economic signals showed persistent inflationary pressures as markets anticipated a rate hike by the European Central Bank at the upcoming meeting. Meanwhile, European technology stocks experienced a mixed performance as investors shifted focus to defensive sectors.
(With inputs from agencies.)