European equities held steady near all-time highs, with declines in HSBC Holdings PLC and Novo Nordisk erasing earlier gains. The Stoxx Europe 600 index closed virtually flat after climbing as much as 0.5% earlier in the session.

Crude oil prices fluctuated lower following Iran's announcement that it had reached an agreement with Oman on navigation routes through the Strait of Hormuz. HSBC Holdings PLC shares dropped 4.7% after a broker downgrade and reports that China has started taxing overseas insurance income, while Prudential fell 6.4%. Novo Nordisk declined 4.3% as sales of its new Wegovy weight-loss drug missed analyst expectations.

On the upside, Heineken gained 2.2% after reporting better-than-expected volume growth, and Glencore surged 4.1% on a sharp profit boost driven by rising prices for key commodities. A strong earnings season has propelled European stocks to record levels. Andrea Gabellone, global head of equities at KBC Securities, noted that "European markets have performed well this year, supported by solid overall results and strong earnings per share growth," but cautioned that full-year data remains volatile given the region's heavy reliance on energy-related profits.