European stock markets closed mixed Thursday as the Stoxx Europe 600 was up 0.13%, Germany's DAX 40 climbed 1.59%, the FTSE 100 in London declined 0.83%, France's CAC 40 rose 0.29% and the Swiss Market Index fell 0.64%.

The European Central Bank's Governing Council lowered its three key interest rates by 25 basis points, citing the updated inflation outlook, underlying inflation dynamics and the strength of monetary policy transmission.

"The economy faces continued challenges," and growth projections were cut to 0.9% for 2025, 1.2% for 2026 and 1.3% for 2027, the bank said in a statement. "The downward revisions for 2025 and 2026 reflect lower exports and ongoing weakness in investment."

The HCOB Eurozone Construction PMI Total Activity Index dropped to 42.7 in February from 45.4 in January, according to S&P Global, which compiles the index. The reading indicates a "steep decline in construction output" and marked the sharpest drop in three months, S&P Global said.

In the UK, the S&P Global UK Construction Purchasing Managers' Index fell to 44.6 in February from 48.1 in January. The gauge fell to the lowest in almost five years and dropped below the 50 threshold that demarcates expansion from contraction for the second straight month.

In corporate news, Rio Tinto completed the acquisition of Arcadium Lithium for $6.7 billion. Arcadium Lithium will become Rio Tinto Lithium and the shares will be delisted from the New York Stock Exchange and the Australian Securities Exchange.

Rio Tinto plans to invest $1.8 billion to develop the Brockman Syncline 1 mine extension project in Western Australia. The project is estimated to process up to 34 million metric tons of iron ore annually and is expected to employ 600 workers once operational.

Shares of Deutsche Post rose 14% in Frankfurt after the German postal services provider announced it will cut 8,000 jobs to reduce costs.

Banco BBVA Argentina reported Q4 earnings Wednesday of 299.417 Argentine pesos ($0.28) per American Depository Share, up from 240.966 pesos a year earlier.