"The Stoxx 600 index closed 0.2% lower as oil prices pared gains following a pause in Iran-Israel hostilities. Monte dei Paschi di Siena shares jumped 13% after an unsolicited takeover bid from Intesa Sanpaolo. Investors are focused on Thursday's European Central Bank policy decision, with a 25-basis-point rate hike expected. Drugmaker Zealand Pharma fell 22.7% due to negative trial data for its obesity drug."