ISTANBUL

European stock markets closed the second trading day of the week with losses, except for the UK.

The pan-European Stoxx Europe 600 index fell 0.21%, or 1.12 points, to close at 540.25.

Germany's DAX 40 fell 0.99% to 23,673.29 points, while France's CAC 40 index slightly decreased 0.04% to 7,662.59 points.

The FTSE MIB 30 index in Italy was also down 0.58% to 39,561.3.

On the other hand, Britain's FTSE 100 index bucked the trend, gaining 0.28% to close at 8,785.33 points.

The investors were focused on the European Central Bank (ECB) forum today.

Speaking at the forum, ECB President Christine Lagarde said the appreciation of the euro against the dollar is a reflection of the market conditions and economic strength of the Eurozone.

Regarding the eurozone June inflation rate announced today as 2%, Lagarde said: “I'm not saying mission accomplished, but I say target reached.”

Bank of England (BoE) Governor Andrew Bailey stated that the policy rate is on a downward trend, adding: "The policy remains restrictive, and it will continue to be restrictive. Although the level of restrictiveness will come down over time."

US Federal Reserve Chair Jerome Powell, who also participated in the program, said that they want to get more data and see the effects of tariffs before starting to cut interest rates again.

Powell also confirmed that the Fed would have cut the policy rate if US President Donald Trump had not imposed high tariffs.

On the macroeconomic data side, the annual inflation in the euro area rose to 2% in June from the previous month's 1.9%.

The rate was in line with both the ECB's medium-term target and market expectations.

The euro/US dollar parity, after rising to a 4-year high of 1.1821, was at 1.1780 as of 1715GMT, down 0.07%.