European stocks traded cautiously on Thursday, with both the STOXX 50 and STOXX 600 fluctuating around the flatline at one-month lows as investors continued to assess the situation in the Middle East, where hostilities remain elevated. Sentiment was tempered somewhat by US President Trump’s remarks that the conflict would not last “too long”. Meanwhile, oil prices and bond yields appeared to stabilize following their sharp rise earlier in the week, providing some support to broader market sentiment. The luxury sector was among the biggest decliners, with LVMH (-2.1%), L’Oreal (-1.7%), Hermes (-2.9%) and Richemont (-2.1%) all trading lower. In contrast, SAP (+0.8%) and Siemens Energy (+1.4%) posted gains.