Markets in Europe closed lower on Thursday as uncertainty surrounding internal U.S. policy continued to weigh on investor sentiment despite tensions easing between the U.S. and North Korea.

The pan-European ended down by 0.6 percent. Banking stocks fell more than 1.5 percent following minutes from the European Central Bank (ECB) Thursday showing concerns over a possible overshoot in the single currency. As a result, the fell to three-week lows against the dollar. The currency, which was down on the day against the dollar, was on track for its biggest daily loss in more than four months.

The construction and materials sector also dipped lower Thursday, led by falls for British home improvement retailer Kingfisher. The business reported a fall in quarterly sales Thursday as it struggled with a slowdown at its B&Q business and weakening demand from France. The results will hurt the company's restructuring plans and caused the stock to dip 4 percent.

Danish wind turbine manufacturer Vestas was down almost 8 percent, after reporting lower-than-expected operating profit in its second quarter results released Thursday. Despite this, the company has retained its forecast for 2017.

Swiss toilet maker Geberit was down 5.7 percent after missing second quarter profit expectations.

On the other end, shares of Swiss dental implant maker Straumann hit an all time high and rose 11.3 percent to the top of the European benchmark after earnings beat market expectations. The business also reported more than $150 million in acquisitions which should help grow the business.

Gn Store Nord, a Danish manufacturer of hearing instruments, rose 6 percent on reports that it is to produce over the counter hearing aids in the U.S.