European stock markets closed off their session lows on Wednesday after multiple policymakers at the ECB's annual forum signaled they were in no rush to raise interest rates.

The STOXX Europe 600 index closed 0.4% lower, having recently posted its best quarterly performance since the end of 2020. Auto and media stocks were among the best performers, while utilities, technology, and energy shares led the declines. The drop in energy stocks was driven by oil prices falling towards $71 per barrel.

The index had been down as much as 0.7% during the session before paring its losses. Speaking at the forum in Sintra, Portugal, Federal Reserve Chair Kevin Warsh noted that inflation risks have diminished in recent weeks. He emphasized the Fed's autonomy in setting appropriate monetary policy and reiterated its commitment to bringing inflation back down to the central bank's 2% target.

Concurrently, European Central Bank Governing Council member Martin Kocher indicated the ECB's next move would involve weighing the choice between raising rates and holding steady.

Earlier released data showed inflation in the eurozone slowed more than anticipated in June.

Florian Ielpo, Head of Macro at Lombard Odier Investment Managers, commented that the report "reduces the urgency for the ECB to continue tightening immediately. On a positive note, in an environment of lower valuations, European markets are supported by earnings while facing less pressure from interest rates."