ECB Rate Hike Fails to Spark European Market Rally

European markets traded cautiously on Thursday following their largest decline in eight weeks. The STOXX 600 index hovered around 639.79 points, showing minimal movement after a 1.4% drop the previous day.

The European Central Bank's (ECB) interest rate announcement was closely watched, with market consensus pointing to a 25 basis point increase, pushing the key rate to 2.5%. Brent crude oil remained above $100 per barrel, intensifying inflation concerns and prompting worries about persistent price increases.

Associated British Foods shares plummeted nearly 12% after disappointing sales figures from its discount fashion retail division, Primark. Meanwhile, D'Ieteren emerged as a top performer, surging almost 5%, following improved first-half earnings and the appointment of a new chief executive officer.