The European stock markets closed lower in Thursday trading amid increased fighting in the Middle East, while the European Central Bank raised its three key interest rates by 25 basis points each.

The Stoxx Europe fell 0.6%, Germany's DAX lost 0.7%, the FTSE 100 dropped 0.6%, France's CAC declined 0.5%, and the Swiss Market Index closed 0.4% lower.

The European Central Bank's Governing Council raised its three key interest rates Thursday by 25 basis points each.

"The conflict in the Middle East continues to generate inflation pressures, and inflation is set to remain well above target for an extended period," the Bank said in a statement Thursday. "Today's decision underscores the Governing Council's commitment to setting monetary policy to ensure that inflation stabilizes at its 2% target in the medium term."

The ECB said it forecasts average headline inflation of 3.0% in 2026, 2.5% in 2027, and 2.1% in 2028.

"The outlook remains highly uncertain, with risks to the upside for inflation and to the downside for economic growth," the ECB said.

In corporate news, HSBC said Thursday that Pam Kaur plans to step down as chief financial officer and executive director next year.

Kaur will assume an advisory role to support the group chief executive. HSBC said it will consider both internal and external candidates for the CFO role.

Shares of HSBC lost 1.2% in London.

Novartis shareholder Artisan Partners called for changes to the Swiss drugmaker's board following two consecutive drug trial setbacks that sent shares tumbling, Reuters reported Thursday, citing an interview with Artisan managing director David Samra.

Novartis needs stronger oversight of acquisitions, citing the $12 billion Avidity deal and the 2024 MorphoSys acquisition, which was later written down, Samra told Reuters. Samra questioned the board's acquisition oversight, while Novartis reaffirmed its unchanged guidance and focus on disciplined capital allocation and shareholder returns, Reuters added.

"Novartis maintains its 5-6% five-year sales CAGR guidance for 2025-2030 and continues to expect mid-single-digit sales CAGR beyond 2030," the Swiss drugmaker said in response to an MT Newswires request, adding that its "pipeline is broad and built to deliver innovation across our core therapeutic areas and bring meaningful medicines to patients."

"We continue a disciplined and shareholder friendly approach to capital allocation by investing in the organic business, pursuing value-creating bolt-ons, and returning capital to shareholders through a growing annual dividend and share buybacks," the company said. "We consistently deliver a total shareholder return among the top of our peer group."

Shares of the Swiss pharmaceutical company gained 0.7% in Zurich.

UBS plans to cease its fund sales unit in China at the end of September, the company told Reuters in a statement.

According to three unnamed sources, UBS has struggled to grow WE.UBS in China's mutual fund distribution market. The company plans to absorb WE.UBS into its China securities unit under plans being discussed, the report said.

UBS didn't immediately respond to a request for comment from MT Newswires.

Shares of the Swiss bank declined 1.1% in Zurich.

TotalEnergies and its partners plan to invest $10 billion in Angola over the next five years to increase oil output in the country, news outlets reported as early as Wednesday, citing remarks made by TotalEnergies Chief Executive Patrick Pouyanne at a conference.

Bloomberg further cited the CEO as saying the investments will be used for exploration and existing developments.

TotalEnergies did not immediately respond to MT Newswires' request for a comment.

Shares of the French oil and gas major increased 0.1% in Paris.

Ryanair Chief Executive Officer Michael O'Leary warned that passenger fares could increase noticeably if petroleum prices stay high into 2027, multiple news outlets reported Thursday, citing his comments to reporters prior to the company's annual general meeting.

The airline anticipates a slight drop in ticket prices during Q2, while expectations for the December and March periods remain completely unclear, the news outlets quoted O'Leary as saying.

"If oil prices remain high into next year, I think there will be a significant uplift in airfares," O'Leary said, according to the report.

Ryanair declined to comment when contacted by MT Newswires.

Shares of the Irish airline fell 1.2% in Dublin.

BHP faces a class-action lawsuit funded by the Mining and Energy Union for allegedly forcing employees to work on public holidays in Australia, the union said Thursday.

The suit seeks compensation for up to 7,000 people employed by the mining company's labor hire units between late 2019 and early 2023, the union said. BHP is currently challenging the underlying legal principle of the workplace law in court ahead of a November hearing, the union added.

BHP did not immediately respond to MT Newswires' request for comment.

Shares of the mining company shed 4.6% in London.

Novo Nordisk said Thursday that China's National Medical Products Administration has approved its Semaglutide injection to treat metabolic-associated steatohepatitis, according to a Google translation of its Chinese statement.

The company said that approval was based on results from its ESSENCE trial, which showed that 63% of patients treated with Semaglutide achieved MASH remission and no worsening of liver fibrosis, compared to 34% in the placebo group.

Shares of the Danish pharmaceutical company decreased 0.9% in Copenhagen.