The Spanish Ibex-35 index closed lower on Thursday, undoing the previous session's gains, after it became known that the eurozone had entered a technical recession.

Eurozone Gross Domestic Product for both the last quarter of 2022 and the first period of the year was revised by Eurostat on Thursday, putting both at -0.1%.

However, despite the fact that entering recession implies that the European Central Bank's rate hikes are taking effect, inflation still remains persistently high, and several senior ECB officials assure that the bank will not take a pause at its June 15 meeting.

Ahead of the ECB, all eyes are on the Federal Reserve meeting on June 13-14.

U.S. jobless claims rose more than expected on Thursday, suggesting that the labor market is slowing, although investors are leaning toward a pause in the Fed's pace of hikes.

Against this backdrop, Spain's selective Ibex-35 stock market closed down 21.50 points on Thursday, down 0.23%, to 9,338.30 points, while the FTSE Eurofirst 300 index of large European stocks rose 0.02%.

In the banking sector, Santander rose 0.50%, BBVA gained 1.51%, Caixabank advanced 0.94%, Sabadell gained 0.76%, Bankinter gained 0.60% and Unicaja Banco rose 1.63%.

Among the large non-financial stocks, Telefónica fell 0.31%, Inditex gave up 0.77%, Iberdrola dropped 0.74%, Cellnex fell 0.66%, and the oil company Repsol rose 0.15%.

(Information by José Muñoz; edited by Emma Pinedo)