2017.12.1421:35:00UTC+00European Markets Lower as Investors Priced in Central Banking News

European stocks closed in the red on Thursday, as the day's central bank meetings failed to provide momentum even though the European Central Bank improved its growth and inflation forecasts.

The pan-European STOXX 600 ended 0.46 percent lower, with the majority of Europe's industries in negative territory. Basic resources outperformed by finishing 0.68 percent higher.

The U.K.'s FTSE 100 dropped 0.65 percent, while France's CAC 40 fell 0.78 percent and Germany's DAX lost 0.44 percent.

Utilities was the worst performing sector, declining 1.29 percent, with the majority of its stocks closing lower. Industrials also came under pressure, amid lower-than-expected company forecasts for 2018.

Capita said that it was poised to hit its full-year profit target yet cautioned some upcoming work would unlikely provide an immediate boost. The outsourcer also cited challenging market conditions as it struggled to secure major contracts. Capita shares plunged 12.6 percent.

Bank stocks, which were already under pressure in early trading after what commentators called a “dovish rate hike” from the U.S. Federal Reserve, suffered.

Europe's banking index dropped 0.6 percent as there was little to revive investors' hopes that monetary policy will be tightened sooner than indicated.

Heavily weighted towards financial stocks, Italy's FTSE MIB was among the worst-performing European bourses, dropping 0.9 percent, failing to bounce back after sharp losses in the previous session as political worries emerged.

Steinhoff plunged to the bottom of the European benchmark after it said it would have to restate its 2016 financial results. Shares of the South African retailer dropped more than 13 percent.