European Shares Dip: Profit-Taking Amid Major Central Bank Decisions

European shares ended a streak of gains, closing 0.4% lower as investors took profits and assessed central bank interest rate decisions. The Bank of England and Sweden held rates, while Switzerland lowered its rate. Geopolitical tensions and economic forecasts impacted market movements, with significant impacts on sectors like banking and defense.

European shares finished four consecutive days of gains with a dip on Thursday, closing 0.4% lower. The decline came as investors opted for profit-taking while digesting interest rate decisions from major European central banks.

The Bank of England and Sweden's Riksbank kept rates unchanged, while the Swiss National Bank reduced its policy rate, outcomes which influenced regional market performances. Geopolitical and economic uncertainties further compounded the market's cautious tone.

Challenges also surfaced with European Central Bank President Christine Lagarde highlighting potential impacts of U.S. tariffs, while the aerospace sector and banks experienced notable downturns. Geopolitical tensions added to the market's nervousness as investors reacted to news of Ukrainian military actions.

(With inputs from agencies.)