European stocks held largely steady, with banking shares climbing as investors awaited a highly anticipated earnings report from Nvidia. The Stoxx Europe 600 index ended the session little changed.

Bank stocks, along with food and beverage companies, posted the strongest gains, while healthcare equities lagged behind. Data released showed U.S. consumer spending stalled in July, while a closely monitored inflation gauge came in line with market forecasts.

Meanwhile, Iran announced it had reached an agreement with Oman regarding the distribution of revenues from the Strait of Hormuz. The two nations are currently pushing for a broader deal on the management of this critical waterway.

European markets have rebounded from last week's downturn, with the Stoxx 600 now sitting less than 1% below its record closing high. However, performance across national indices has diverged this year, with Italian and Spanish stocks leading the gains, while French and German markets have lagged behind.

"There are many uncertainties, not just around oil prices," said Stephanie Niven, portfolio manager at Ninety One, noting that Europe lacks a clear macroeconomic catalyst.