This was CNBC's live blog covering European markets.
European stocks closed broadly higher Thursday, despite the U.K.'s FTSE 100 erasing gains as the U.K. and U.S. confirmed a trade agreement and the Bank of England cut interest rates.
The pan-European Stoxx 600 closed 0.4% higher, trimming earlier gains, with Germany's DAX up 1%. The risk-sensitive technology sector rose 1.64% amid optimism in U.S. markets over trade talk progress.
However, the U.K.'s FTSE 100 bucked the trend to tumble 0.32% after snapping its record winning streak on Wednesday. Sterling was slightly higher against the euro and U.S. dollar. See CNBC's full coverage of the U.K.-U.S. deal here.
As the U.K. announced a strengthening of its trading relationship with Washington, the EU said it was preparing to launch a WTO complaint against the United States over the Trump administration's tariffs regime.
The bloc also said it was launching a public consultation on a list of U.S. imports worth 95 billion euros ($107.5 billion) that could be subject to new import duties as a part of EU retaliatory measures.
In London, the Bank of England on Thursday cut its key interest rate by 25 basis points, bringing it down to 4.25%. The central bank's Monetary Policy Committee voted by a 5 to 4 majority to reduce rates by 25 basis points. Two of its members voted to cut rates by 50 basis points, while another two wanted to hold rates steady.
It came after Sweden's Riksbank held its key interest rate steady, citing uncertainty in the global economy as a direct result of U.S. President Donald Trump's trade policies.
Also in focus was the Federal Reserve's latest policy decision - the U.S. central bank on Wednesday held steady on rates as it highlighted rising inflation and unemployment risks.
The Federal Open Market Committee held its benchmark overnight borrowing rate in a range of between 4.25% to 4.5%, where it has been since December. The decision was largely expected.
Despite a decline in the U.K.'s FTSE 100, British firms including engine-maker Rolls Royce and aerospace firm Melrose both closed higher on news of a U.K.-U.S. trade agreement. Shares of the companies closed 3.7% and 5.2% higher, respectively.
"The contents of the deal remain very limited in their totality and we await the full detail before we can say if there is a winner from this negotiation," Lindsay James, investment strategist at Quilter, said in emailed comments.
"However, for the U.K. this deal appears to be ultimately favourable for some of its largest exports, specifically cars, auto parts and aerospace engines to name some of the key areas."
President Donald Trump unveiled the broad outline of a trade agreement with the United Kingdom, though specifics about the deal were not immediately clear, and nothing was signed during the Oval Office event.
"The final details are being written up," Trump said. "In the coming weeks we'll have it all very conclusive."
He said that the deal includes "billions of dollars of increased market access for American exports," and that the UK will "reduce or eliminate numerous non-tariff barriers that unfairly discriminated against American products."
While the event was ongoing, Trump's Truth Social account posted a screenshot indicating U.S. tariffs on the UK will stay at 10%.
A former adviser to a British Prime Minister has said the U.K.-U.S. trade deal expected later today is likely to be "far short of anything comprehensive."
In a post on Truth Social, U.S. President Donald Trump said Thursday: "The agreement with the United Kingdom is a full and comprehensive one that will cement the relationship between the United States and the United Kingdom for many years to come."
Andrew Hood, international trade lead at London based law firm Fieldfisher and former general counsel to Prime Minister David Cameron, said there were "some" differences between how the U.S. and the U.K. were portraying the trade deal expected to be announced.
"The President described it as full and comprehensive, but it looks more likely to be focussed on reducing tariffs in certain key sectors, notably for cars. It may include steel and other specific sectors but it is a long way off the full Free Trade Agreement the UK and US have been negotiating for almost exactly 5 years," Hood said. "It appears likely to help address the trade friction created by the President's recent announcements, but will be far short of anything comprehensive."
In addition to launching a WTO complaint against the U.S. on Thursday, the European Commission also said it would open a public consultation on a list of goods that could become subject to EU countermeasures against U.S. tariffs.
The goods - which include certain types of livestock, wine, chocolate and machinery, among other things - are worth 95 billion euros ($107.5 billion), according to the European Commission.
The European Union announced on Thursday that it was launching a WTO dispute against the U.S. in relation to the Trump administration's so-called reciprocal tariffs, as well as new levies on cars and car parts imported into America.
"It is the unequivocal view of the EU that these tariffs blatantly violate fundamental WTO rules," the EU said in a statement. "The EU's objective is thus to reaffirm that internationally agreed rules matter, and these cannot be unilaterally disregarded by any WTO member, including the US."
The bloc also said Thursday that it was launching a public consultation on its retaliatory tariffs on American imports, the rollout of which has been paused until the summer.
Shares of Swiss recruitment giant Adecco gained 9.8% by 12:39 p.m. in London, putting the company's stock at the top of the regional Stoxx 600 index.
It came after Adecco said its first quarter revenues fell by 3% year-on-year to 5.57 billion euros ($6.29 billion). Analysts had expected the company's quarterly revenues to come in at 5.54 billion euros, according to LSEG.
The British pound rallied after the Bank of England cut interest rates, as markets were expecting, on Thursday.
By 12:29 p.m. London time, sterling was around 0.2% higher against the U.S. dollar, while gaining 0.3% against the euro.
Investors are also awaiting an announcement on a potential trade deal between the U.K. and the U.S. later today.