Europe close: Stocks end on mixed note ahead of Fed minutes

European stocks drifted lower amid rising geopolitical tensions and after a sell off on Wall Street overnight over rate rise fears hit investor sentiment.

The benchmark Stoxx 600 index was down 0.33% to 462.22 with nearly all major regional bourses lower. Germany's Dax was the exception, edging up 0.01% to 15,399.89 while Milan's FTSE MIb gave back 1.12% to end the day at 27,101.53.

Traders were also awaiting minutes from the US Federal Reserve’s latest monetary policy meeting for clues as to how its thinking might have changed since the end of January.

"Investors are clearly hoping that the Fed minutes will rescue them from this outbreak of bearishness over interest rates, but given the data we’ve had since then the minutes might not be able to do much to retrieve the situation," said IG chief market analyst Chris Beauchamp.

"European markets have fallen more than their US peers this afternoon, but are in a much better position overall, and seem to provide the better risk-reward outlook heading into March."

Stock on Wall Street had suffered their biggest one-day fall during the previous session as much stronger than expected survey data pushed Fed funds futures to price out the possibility of interest rate cuts in 2023.

Traders were also still digesting hawkish comments on Wednesday from Russia President Vladimir Putin, who tried to justify his illegal invasion of Ukraine, while US counterpart Joe Biden hit back in a speech delivered while visiting Poland.

And on Thursday, Putin revoked the 2012 decree which in part had underpinned Moldova's sovereignty when it came to the Transdniestria region, Reuters reported.

In regional economic news, German inflation rose 9.2% year on year in January, with a month-on-month increase of 0.5%.

In equity news shares German healthcare group Fresenius Medical Care surged 7% as it said it would slash costs and proceed with plans to cede strategic control over struggling dialysis group Fresenius Medical Care.

The move comes after activist investor Elliott Investment Management took a stake in Fresenius last year, sparking speculation it might push for a break-up of the company.

UK lender Lloyds Bank edged up after it reported flat annual profit.

Carmaker Stellantis shares gained 2% as the company said operating profit grew 17% in the second half of last year.

Shares in Spanish utility Iberdrola were flat despite the company saying it expects net profit to grow this year.

Primary Health Properties was up a tad after reporting modest growth in its full-year rental income and profits but sounding a confident note on its longer-term prospects.