European stocks closed broadly lower on Thursday as concerns about interest rates following the Federal Reserve's hawkish tone rendered the mood bearish. The pan European Stoxx 600 drifted down 0.34%, while the UK's FTSE 100 ended 1.04% lower. Germany's DAX and France's CAC 40 gained 0.37% and 0.44%, respectively, and Switzerland's SMI settled lower by 0.36%. The Bank of England held its bank rate at 3.75% in a 7-2 vote, and the Swiss National Bank left its policy rate unchanged at zero percent. News about the U.S. and Iran signing an interim peace plan helped limit the downside, with President Donald Trump and Iranian counterpart Masoud Pezeshkian electronically signing the Islamabad Memorandum of Understanding, which will immediately reopen the Strait of Hormuz and lift the U.S. naval blockade of Iranian ports.