This was CNBC's live blog covering European markets.

LONDON — European markets closed lower on Thursday, ending October with its steepest loss for a year as investors weighed earnings, inflation and a landmark U.K. budget.

The pan-European Stoxx 600 closed the session 1.2% lower with all sectors and major bourses in the red. It takes monthly losses to 3.4%, according to LSEG data, the worst performance for the regional benchmark since October 2023.

Preliminary data published Thursday showed that inflation in the euro zone rose to 2% in October, higher than the 1.9% expected by analysts polled by Reuters and ahead of September's 1.7% reading.

The figures will inform the European Central Bank's decision on the path of interest rate cuts, with economists saying there is now little chance of a jumbo 50 basis point rate cut at its December meeting rather than the expected 25 basis point cut.

The release comes after economic data published Wednesday showed that the euro zone economy grew 0.4% in the third quarter of 2024, above the 0.2% rise expected by economists polled by Reuters.

U.K. housebuilders broadly retreated as U.K. government bond yields soared through the afternoon, with traders appearing to grow increasingly wary of the huge package of tax rises and borrowing announced in Wednesday's budget. Some economists argued the package will be mildly inflationary and reduce the pace of Bank of England rate cuts.

Charlie Campbell, equity researcher at Stifel, told CNBC housebuilders were highly sensitive to interest rate swaps and would be disappointed by the budget, which failed to provide much clarity for the sector.

However, he added that the outlook was likely to brighten amid the remainder of third-quarter results, as interest rates do continue to gradually reduce, and as the Labour government provides detail on sector-supportive policies.

Shares in Societe Generale meanwhile closed 11.3% higher after the bank posted a 10.5% year-on-year revenue jump in the third quarter and announced leadership changes, including the appointment of a new chief financial officer.

Shell, Stellantis, Maersk, AB Inbev, and Carlsberg also reported.

U.S. stocks fell for a second day, weighed down by weaker-than-expected earnings reports from key technology companies.

Investors also considered the latest U.S. economic data, with the personal consumption expenditure price index coming in at 2.1% on an annual basis in September, which was in line with expectations. The PCE reading is the Fed's preferred inflation gauge.

Elsewhere, Asia-Pacific markets slipped as investors reacted to the Bank of Japan's rate hold, as well as key business activity figures from China.

Europe stocks close lower

European stocks closed lower Thursday, with the Stoxx 600 index down 1.2% and all sectors in the red.

France's CAC 40 fell 1.05%, as Germany's DAX and the U.K.'s FTSE 100 lost 0.93% and 0.61%, respectively.

— Jenni Reid

UK housebuilders plunge day after budget

Shares of U.K. housebuilders tumbled in afternoon trade as investors continue to digest Wednesday's landmark budget plan amid a spike in government bond yields.

Persimmon shares were down by 8% at 3:50 p.m. London time, Bellway by 7.7%, Taylor Wimpey by 7.5%, Crest Nicholson by 6.8% and Barratt Redrow by 6%.

Finance Minister Rachel Reeves made several announcements on housing, including a £5 billion ($6.4 billion) investment toward aims including its home construction target, and an increase on the duty paid on second home purchases.

Housebuilders had traded slightly higher Wednesday.

Thursday afternoon saw a sharp acceleration in the rise in gilt yields, with 2-year U.K. bond yields up 17 basis points and the 10-year yield higher by 15 basis points.

Charlie Campbell, equity research analyst at Stifel, said in a Wednesday note that the budget was "slightly negative" for housebuilders which would remain focused on macro conditions.

Traders are also assessing whether the fiscal expansion announced in the budget will impact the pace of Bank of England interest rate cuts.

— Jenni Reid

UK bond yields spike sharply

U.K. bond yields soared a day after the ruling Labour Party unveiled a sweeping package of tax hikes and increased borrowing.

The 2-year gilt yield was up 18 basis points at 2:13 p.m. London time, after briefly breaching 4.5% earlier in the session for the first time since Labour took office in early July. The 10-year yield jumped 15 basis points to 4.497%.

Read more here.

- Jenni Reid

Stocks open lower Thursday

U.S. stocks began Thursday's session in the red.

The S&P 500 fell 0.8%, while the Nasdaq Composite declined 1.1%. The Dow Jones Industrial Average declined 220 points, or 0.5%.

— Hakyung Kim

Societe Generale shares climb 10%

Shares in Societe Generale extended gains, up 10.61% at 1:19 p.m. London time.

The rise comes after the company on Thursday posted a 10.5% year-on-year revenue jump in the third quarter and announced leadership changes, including the appointment of a new chief financial officer.

— Sophie Kiderlin

BNP Paribas shares fall as much as 6% after reporting third quarter results

Shares in BNP Paribas fell as much as 6% Thursday and were last 5% lower at 12:50 p.m. London time after the company posted its third-quarter results.

The French lender said revenues increased 2.7% to 11.9 billion euros ($13 billion) in the third quarter compared to a year earlier. Group-wide net income rose to 2.87 billion euros in the three months to the end of September, which was a 5.9% increase compared to the same quarter in 2023.

Speaking to CNBC, Lars Machenil, chief financial officer at BNP Paribas, said that it was a "strong quarter" for the bank.

Bank of America analysts in a note on Thursday said BNP Paribas had "delivered an ok set of results." Meanwhile, Reuters reported that some analysts were disappointed with the French lender's quarterly earnings.

— Sophie Kiderlin

Closely watched Fed inflation figure rises in-line with expectations in September

The personal consumption expenditures index — a closely watched inflation gauge by the Federal Reserve — rose 0.2% in September and 2.1% on a year-over-year basis. The data was in-line with estimates from economists polled by Dow Jones.

The core figure, which excludes energy and food, rose 0.3% on a month over month basis. On a yearly basis, the figure came in at 2.7% and slightly ahead of the 2.6% expected by Dow jones.

Elsewhere, weekly jobless claims data for the week ending Oct. 26 came in at 216,000, behind a 230,000 estimate from economists polled by Dow Jones.

— Samantha Subin

Euro zone inflation data a 'reality check', economist says as analysts assess the latest figures

Economists and analysts assessed the latest euro zone inflation data on Thursday, weighing in on implications for upcoming interest rate decisions from the European Central Bank.

Bert Colijn, chief economist for the Netherlands at ING, said the figures provided "a reality check about the eurozone's disinflationary process."

"Including yesterday's accelerating GDP growth figures, this week's data has provided some counterweight to the ECB's dovish view presented on inflation at the October press conference," he said. While ECB President Christine Lagarde at the time said data was pointing downward, figures released since have instead pointed on the upside, Colijn said.

Chances of a 50-basis-point interest rate cut from the ECB are now very low, according to Kyle Chapman, foreign exchange market analyst at Ballinger Group.

Chapman said that, while an uptick in consumer price growth was expected toward the end of the year, services inflation remained sticky.

"A big concern underpinning the risks of inflation undershooting the target was a potential tipping point with the labor market, the surprising resilience of which could be at risk of a sharp unwind in labor hoarding if consumption worsens. That concern is no longer so significant," Chapman stressed in a note, pointing to this week's growth and employment figures.

"Back-to-back 25 [basis point] moves are the way to go."

— Sophie Kiderlin, Jenni Reid

ING expects to sustain profitability despite sharp movements in interest rates, says CFO

ING CFO Tanate Phutrakul discusses the bank's third-quarter earnings and the potential impact of monetary policy on the firm.

Euro zone inflation rises to 2% in October

Euro zone inflation rose to 2% in October, higher than the 1.9% expected by analysts polled by Reuters, according to preliminary data from statistics agency Eurostat.

The October reading was also above the 1.7% rise of September, which was revised from an initial 1.8% estimate.

Core inflation was unchanged at 2.7% in October, but came in just above the forecast of 2.6%.

Read the full story here.

— Sophie Kiderlin

Market movers: Jeronimo Martins rises 9%, Smith & Nephew falls 14%

Shares in Portuguese food distribution and retail company Jeronimo Martins rose 9.2% on Thursday after the company posted better-than-expected third-quarter results. It's net profit came in at 193 million euros ($210 million) for the quarter, which was above the 166 million euros expected by analysts, according to Reuters.

British medical equipment maker Smith & Nephew meanwhile cut its underlying revenue growth expectations for the full year 2024, citing China headwinds. Growth is now expected to be around 4.5%, down from a previously expected range between 5% and 6%. The company's shares were last 13.6% lower.

— Sophie Kiderlin

Societe Generale rises 8% after revenue jump, leadership changes

Shares in France's Societe Generale jumped over 8% shortly after markets opened on Thursday.

The bank on Thursday said that its revenue had jumped 10.5% year-on-year in the third quarter, coming in at 6.8 billion euros ($7.4 billion). Group net income totalled 1.4 billion euros.

The lender also announced several leadership changes on Thursday, including the appointment of Leopoldo Alvear as the group's new chief financial officer, taking over from current CFO Claire Dumas in early 2025.

Societe Generale shares were last up by 8.23% at 8:39 a.m. London time.

— Sophie Kiderlin

French inflation comes in at 1.5% in October

Preliminary data from French statistics office Insee showed that French inflation came in at 1.5% in October, in line with the expectations of analysts polled by Reuters.

Inflation had added 1.4% in September.

The readings are harmonized to ensure comparability across the euro area.

Insee linked the near-stability of inflation to a slowdown of services prices and a less sharp annual fall in energy costs in October, compared to the previous month.

— Sophie Kiderlin

European markets open lower on Thursday

European markets opened lower on Thursday, with the pan-European Stoxx 600 index down 0.65% at 8:04 a.m. London time.

Sectors widely traded in negative territory, with insurance stocks falling 1.42% and retail shares pulling back 1.14%.

— Sophie Kiderlin

German retail sales unexpectedly rise 1.2%

Retail sales in Germany rose 1.2% month-on-month in real terms in September, statistics agency Destatis said Thursday, according to a CNBC translation. Analysts polled by Reuters had been expecting a 0.5% decline.

Food sales fell 0.8% in September from August, Destatis noted.

Separately, German economic institute Ifo on Thursday released its latest business climate in retail survey, saying the indicator came in at negative 25.2 points in October,  compared with minus 25.6 points in September

Retailers considered their current situation had improved slightly, but expectations for the coming months were still depressed, Ifo said.

— Sophie Kiderlin

Dodge maker Stellantis posts 27% drop in revenues, flags progress in slashing U.S. inventories

Auto giant Stellantis on Thursday reported a 27% decline in third-quarter net revenues, but said it was making headway in addressing operational issues such as U.S. inventories.

The Netherlands-based company, which owns household names including Jeep, Dodge, Fiat, Chrysler and Peugeot, said that net revenues for the July-September period came in at 33 billion euros ($35.8 billion). Analysts had expected third-quarter net revenues to come in at 36.6 billion euros, according to an LSEG-compiled consensus.

Read the full story here.

— Sam Meredith

Carlsberg posts 0.9% revenue growth in third quarter

Brewer Carlsberg on Thursday reported 0.9% revenue growth in the third quarter of 2024, totalling 20.5 billion Danish krone ($2.98 billion).

"It was a tough quarter, impacted by a challenging consumer environment and weather," Carlsberg CEO Jacob Aarup-Andersen said. The company noted that volumes were lower in China, the U.K. and France.

Carlsberg left its expectations for the full year 2024 unchanged, saying it was anticipating organic growth in its operating profit before special items to come in between 4% and 6%.

— Sophie Kiderlin

Beer giant AB InBev misses third-quarter revenue expectations, but raises outlook

Belgium's beer giant AB InBev on Thursday reported that its total revenue grew 2.1% in the third quarter, coming in short of the 3.4% increase analysts had forecast, according to Reuters.

Volumes also fell by more than expected. The company said it had sold less beer in several key markets including the United States, Mexico and China.

The world's largest brewer nevertheless raised its full-year 2024 outlook, saying it was expecting its organic core profit (EBITDA) to now come in at 6% to 8%, compared with a previous outlook of 4% to 8%.

AB InBev also announced a $2 billion share buyback program over the next 12 months.

— Sophie Kiderlin

Oil giant Shell posts $6 billion profit beat, launches new share buyback program

British oil giant Shell on Thursday posted a small year-on-year drop to a stronger-than-expected third-quarter profit, partly owing to a sharp drop in crude prices and to lower refining margins.

The energy company reported adjusted earnings of $6 billion for the July-September period, beating analyst expectations of $5.3 billion, according to estimates compiled by LSEG.

Read the full story here.

— Sam Meredith

European markets: Here are the opening calls

European markets are expected to open in negative territory Thursday.

The U.K.'s FTSE 100 index is expected to open 14 points lower at 8,145, Germany's DAX down 78 points at 19,184, France's CAC down 12 points at 7,412 and Italy's FTSE MIB down 193 points at 34,110, according to data from IG.

Traders will be keeping an eye on flash euro zone inflation data Thursday, while earnings come from Shell, Stellantis, Maersk, AB Inbev and Carlsberg.

— Holly Ellyatt

Bank of Japan reiterates resolve to keep hiking rates if economy continues to recover

Japan's central bank said it will keep hiking rates if the country's economy continues to recover, the BOJ wrote in its quarterly outlook report.

This comes after the bank held its benchmark policy rate at 0.25% on Thursday.

The report puts Japan's "potential growth rate" at 0.5% to 1%, with the BOJ adding that the country's economy is likely to "keep growing at a pace above its potential growth rate."

However, the BOJ also highlighted that it needs to "pay due attention" to the course of overseas economies, particularly the U.S., as well as developments in capital and financial markets.

— Lim Hui Jie

China's manufacturing activity expands for the first time since April

China's manufacturing purchasing managers index flipped into expansion territory for the first time since April, with the National Bureau of Statistics revealing the manufacturing PMI came in at 50.1.

This beat forecasts from a Reuters poll of economists, who expected the manufacturing PMI to come in at 49.9, a softer contraction than the 49.8 the month before.

The composite PMI stood at 50.8, higher than the 50.4 in August. China's non-manufacturing PMI also came in stronger at 50.2, up from 50.0 the month before.

Read more in the full story here.

— Lim Hui Jie

CNBC Pro: As Diwali begins, these 4 Indian stocks are set to rise over 30%, analysts say

Interest in India has been growing steadily among investors.

As the Diwali festive season gets underway in the South Asian powerhouse, several sectors — and stocks — are expected to do well, analysts say.

Samvat 2081 — which starts on the day of Diwali on Oct. 31 — marks the start of the Hindu new year. It can lead to stock market moves, as some investors view it as a new beginning.

Indian markets made history in Samvat 2080 with the BSE Sensex surpassing 85,900 in September while the benchmark Nifty 50 index is crossed 26,250. Both indexes gained around 25% in the year, analysts from Kotak Securities flagged.

Analysts from Kotak and Mirae Asset revealed four buy-rated Indian stocks with over 30% potential upside they are betting on this Diwali.

CNBC Pro subscribers can read more here.

— Amala Balakrishner