European stock markets settled lower on Thursday, after rallying the previous day as investors saw the possibility of gains for European companies from a rise in U.S. fiscal spending.

Europe's leading Blue-chip index, EURO STOXX 50 declined 5.49 points or 0.16 percent to settle at 3,384.71. UK's benchmark index FTSE 100 declined 0.55 points or 0.01 percent to close at 7,382.35. Germany's benchmark index DAX lost 7.62 points or 0.06 percent to end at 12,059.57.

On the other hand, French benchmark index CAC 40 went up 2.97 points or 0.06 percent to end at 4,963.80.