(RTTNews) - Shares across Europe are expected to begin the session in negative territory on Thursday, following a steep decline in American equities the previous night driven by worries over monetary policy.

The Federal Reserve kept its benchmark interest rate unchanged, yet Chair Kevin Warsh emphasized price stability in remarks that pointed to a more hawkish stance ahead.

Regional declines could stay limited after multiple reports indicated that U.S. President Donald Trump and his Iranian counterpart had remotely reached a preliminary accord to conclude the 110-day conflict.

The official text of the memorandum of understanding agreed over the weekend has now been published. It calls for the immediate and permanent end of military operations on every front, including Lebanon, the reopening of the Strait of Hormuz, and removal of the U.S. naval blockade against Iran.

Iran has agreed to downblend its stockpile of highly enriched uranium, which a senior official described as a major concession. Sanctions relief remains linked to progress on the nuclear settlement.

Iran will gain waivers for crude oil exports, petroleum products, and related banking services right after the MOU is signed.

Israel did not participate in the talks or the agreement. Technical details will be finalized during a 60-day negotiating window that starts after the signing ceremony scheduled for Friday in Switzerland.

Trump warned that attacks would resume and Iranian officials could be targeted if commitments are not met.

Meanwhile, the Bank of England is expected to hold interest rates steady at 3.75 percent later today, while the Swiss central bank may also leave its key policy rate at zero.

Asian markets finished mixed amid ongoing concerns that the U.S. Federal Reserve could raise rates later this year.

The U.S. dollar held near a more than two-month peak, while Brent crude futures dropped more than 2 percent below 78 dollars per barrel and moved toward pre-conflict levels after the IEA flagged a possible supply glut.

Gold rose 1.6 percent to 4,324 dollars an ounce, recovering from the prior session losses.

Overnight, U.S. stocks fell sharply and Treasury yields increased after the Federal Reserve left rates unchanged as anticipated, though updated projections pointed to at least one possible rate increase this year.

After removing forward guidance from the policy statement, Kevin Warsh noted in his first press conference as Fed Chair that such language was no longer useful and that he would review how the central bank communicates with markets and the public.

He urged investors to focus on incoming data about inflation, employment, and other indicators rather than attempting to forecast Fed actions. He also declined to release the traditional dot plot, calling it unhelpful for policy decisions.

Earlier data showed retail sales rose more than forecast in May, while pending home sales climbed 4.8 percent, indicating firmer housing demand.

The tech-heavy Nasdaq Composite fell 1.3 percent, the S&P 500 dropped 1.2 percent, and the Dow declined 1 percent.

European stocks recorded modest gains on Wednesday, extending their winning streak to five sessions as investors awaited further details on the U.S.-Iran peace accord.

The pan-European STOXX 600 advanced half a percent. The German DAX and the U.K. FTSE 100 each rose 0.1 percent, while France CAC 40 eased 0.2 percent.

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