Europe close: Stocks end mixed despite dovish ECB

(Sharecast News) - European shares ended Thursday's session in mixed fashion despite more dovish than expected messaging on the interest rate outlook out of European Central Bank boss Christine Lagarde. The pan-regional Stoxx 600 index edged up 0.30% to 478.53, with the German Dax edging up by 0.1% to 16,906.92 alongside.

Spain's Ibex 35 and the Italy's FTSE Mib however both fell by just over half a percentage point.

Economists at Berenberg and Pantheon Macroeconomics both highlighted the fact that Lagarde did not expressly rule out the possibility of a reduction in rates as early as next April.

In the background, German business sentiment deteriorated further in January, according to a survey released by the Ifo Institute.

IFO's closely-followed business climate index fell to 85.2 from 86.3 in December, coming in well below consensus expectations of 86.7.

It followed a GDP forecast cut for Europe's biggest economy from the same organisation on Wednesday.

In equity news, shares in Nokia jumped after the telecoms giant said it would start a two-year €600m share buyback this quarter, despite posting plunging profit in 2023.

Online trading platform IG Group slumped as it reported a drop in interim revenues and profits, citing "softer market conditions" and a strong comparative period.

Wizz Air fell after the budget airline reported a bigger third-quarter operating loss, due to engine inspections that have grounded parts of its fleet and the suspension of flights in response to the Middle East conflict.