European stock markets closed lower on Tuesday, influenced by possible peace negotiations between Russia and Ukraine and expectations related to central bank decisions.

On Tuesday, European stock markets recorded declines, with the pan-European Stoxx 600 falling by 0.4%, amid investor reactions to signals of peace negotiations between Russia and Ukraine. Statements from Ukrainian President Zelensky, suggesting that Ukraine might abandon its NATO membership for a peace agreement, caught the markets' attention. The aerospace and defense sector was the most affected, with a 1.8% drop in the Stoxx Europe Aerospace and Defense index.

Investors are preparing for a crucial week regarding monetary policy, with meetings of the European Central Bank, the Bank of England, and other institutions. While it is expected that the ECB's benchmark interest rate will remain at 2%, President Christine Lagarde hinted at a possible revision of economic growth estimates. In the UK, the unemployment rate rose to 5.1%, and recent data suggests an inevitable rate cut by the Bank of England.

Additionally, European leaders will meet to discuss financial support for Ukraine, including the use of frozen Russian assets. Markets in the Asia-Pacific followed the negative trend, and US stock markets closed slightly down, with modest job growth in November.