European markets close higher amid rate cut speculation; Lufthansa up 5.6%

This is CNBC's live blog covering European markets.

European markets closed slightly higher on Thursday, after bouncing around throughout the day, as speculation about the first interest rate cut by the European Central Bank continues.

The benchmark Stoxx 600 index provisionally ended 0.3% higher, with sectors mixed. Banks led with a 1.6% gain, while oil and gas stocks dropped 1.46% following a sharp fall in oil prices Wednesday. Tech stocks were also trading firmly in the red.

Airline stocks rose as oil prices fell and easyJet reported results above expectations. Lufthansa ended the day around 5.6% higher.

Switzerland's ABB, meanwhile, rose 6.26% on expectation-beating operating profits.

Earlier in the day, ECB policymaker François Villeroy de Galhau told CNBC the central bank should cut interest rates in June to avoid falling behind the inflation curve.

"The question is the next Governing Council which will be early June ... and here barring a major surprise we should cut rates because we are now confident enough and increasingly confident about the disinflationary path in the euro area," Bank of France Governor Villeroy told CNBC's Karen Tso at the IMF Spring Meetings.

U.S. stocks advanced on Thursday after the S&P 500 and Nasdaq Composite on Wednesday logged a fourth straight day of losses during the prior session, with tech stocks weighing on the indexes.

Asia-Pacific markets climbed across the board Thursday, shaking off the Wednesday wobble.

— Katrina Bishop

The European Central Bank should cut interest rates in June to avoid falling behind the inflation curve, according to policymaker François Villeroy de Galhau.

"The question is the next Governing Council which will be early June ... and here barring a major surprise