European stock markets settled lower on Thursday, pulling back from a 21-month high, with the market coming under pressure as the euro marched higher in the wake of a lackluster economic outlook for the British economy.

Europe's leading Blue-chip index, EURO STOXX 50 fell 22.19 points or 0.61 percent to settle at 3,623.55. Germany's benchmark index DAX declined 46.40 points or 0.36 percent to end at 12,711.06. French benchmark index CAC 40 dropped 17.04 points or 0.32 percent to end at 5,383.42.

On the other hand, UK's benchmark index FTSE 100 went up 1.39 points or 0.02 percent to close at 7,386.63.