European stocks traded higher Thursday after strong earnings reversed early losses resulting from a more hawkish tone from the U.S. Federal Reserve.

The pan-European Stoxx 600 closed 0.50% higher to 387.68  , led by a 2.2% gain for financial services stocks. Basic resources plummeted 3.2% on the back of a steep loss for Tenaris after the Luxembourg-based steel company missed second-quarter earnings expectations.

In the U.K., the Bank of England's Monetary Policy Committee voted unanimously to hold interest rates steady at 0.75% and cut its growth forecast in the face of increased Brexit worries and a slowing global economy.

The BOE gave no indication that it was considering lowering interest rates. Its forecasts assume Britain avoids a sudden Brexit shock, but the central bank lowered its growth forecast to 1.3% for 2019 and 2020, down from 1.5% and 1.6% respectively.

Source : CNBC