European shares edged lower on Thursday as investors increased bets on a Federal Reserve rate hike ​after policymakers struck a hawkish tone, though easing oil prices helped temper inflation concerns.While the Fed held rates steady on Wednesday, nine policymakers projected one rate hike this year. The pan-European Stoxx 600 index ended the session down 0.3 per cent. An interim peace agreement between the US and Iran to end the ​war and reopen the Strait of Hormuz – a key global oil shipping route, has brought a relief for markets in recent ⁠days, with oil prices falling to early-March levels, trading near $78 a barrel.DublinThe Iseq All-Share index rose 0.4 per cent to 13,786.23. Ryanair stood out as a strong feature – rising 1.5 per cent to €25.85 – amid a decline in oil prices in recent days. Banking stocks were mixed, with AIB falling 0.2 per cent to €10.58 and Bank of Ireland rising 0.3 per cent to €18.38, as the sector took pause for breath after strong gains earlier in the week. Insurer FBD was among the weaker performers, falling 2.9 per cent to €16.70. LondonThe FTSE 100 fell 1 per cent after the Bank of England left rates unchanged, with a ‘hawkish’ hold the previous evening by the US Federal Reserve weighing on the market mood.Persimmon fell 6.2 per cent, Land Securities fell 3.7 per cent, and British Land fell 2.6 per cent as they traded ex-dividend.Oil giants BP and Shell fell 1.6 per cent each, as oil prices touched their lowest since the start of the Iran war.Intertek gained 1.6 per cent after the testing and certification firm agreed to a takeover by Swedish private equity firm EQT.Tesco fell 0.9 per cent after it reported sales of £16.8 billion (€19.4 billion) in the 13 weeks ended May 20, with like-for-like (LFL) growth of 1.0 per cent, supported by growth in the UK stores and strong online demand.Like-for-like sales in the UK grew 1.8 per cent, below the Visible Alpha consensus of 2.3 per cent, while LFL sales in the Republic of Ireland increased 3.3 per cent, slightly above consensus. Friday’s global economic calendar has inflation figures in Japan overnight, and retail sales data in the UK and Canada. US financial markets are closed for Juneteenth.Friday’s local corporate calendar includes full-year results from Cordiant Digital Infrastructure and Record.EuropeEnergy price-sensitive airlines Lufthansa and Air France ‌rose.Among others, chipmakers Infineon and Aixtron gained ground. Aircraft ‌manufacturer Airbus rose after Kepler upgraded the stock, while food retailer.The IMK economic institute said Germany’s economy will grow less than previously ​expected. The Bank of England is due to announce its rate verdict later this morning.BMW is “on the ​right track” with its next-generation models, supervisory board chairman Nicolas Peter said on Thursday, days after a shock profit warning that has hit the German automaker’s shares. Still, the stock lost another 4 per cent. New YorkUS ‌stocks were ahead in early afternoon trading on Wall Street, with semiconductor shares leading gains as optimism about a Middle East peace deal offset worries about a hawkish Federal Reserve under new chair Kevin Warsh.Intel’s shares jumped after US president Donald Trump said Apple had agreed to work with the company to design and manufacture its chips in the US. Other chip stocks, including Nvidia, Micron and Marvell Technology also rose. All three major US indexes sank in the previous session as investors priced in the likelihood of more Federal Reserve rate hikes, after Warsh underscored the need to curb inflation and other policymakers signalled ⁠higher borrowing costs ahead.Shares of Accenture tumbled after the company trimmed the top end of its annual revenue forecast. Peers Cognizant Technology Solutions and IBM dropped.Markets have regained ground from a slump in early June, with a resilient economy, a broadening rally beyond tech ‌shares and optimism surrounding a US-Iran deal ⁠boosting sentiment.On the data front, Labor Department data showed the number of Americans filing claims for unemployment benefits fell last week as lay-offs remained low. – Additional reporting, Reuters, Press Association