This is CNBC's live blog covering European markets.
European markets closed higher Thursday, with luxury stocks soaring on strong results from Cartier owner Richemont.
The regional Stoxx 600 index provisionally ended the day 0.93% higher, with most sectors in positive territory. Retail stocks pared earlier gains to fall 0.2%.
Luxury sector bellwether Richemont jumped 16% after reporting a better-than-expected 10% increase in fiscal third-quarter sales, while France's LVMH, Kering and Christian Dior all rising. Retailers Moncler, Burberry, Swatch and Hermes also crowded around the top of the Stoxx index.
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Technology stocks closed 1.9% higher, with chip firms including ASM International and Be Semiconductor boosted by forecast-beating earnings from Taiwan Semiconductor Manufacturing Company.
The moves continue positive momentum from Wednesday, which saw European stocks post their best session in four months.
Money Report
Global sentiment was boosted after U.S. consumer price inflation came in just below forecasts, at 3.2% on a core basis, which excludes food and energy prices. The headline annual reading came in line with the 2.9% forecast in a Dow Jones poll.
U.S. markets were buoyed by a flurry of strong big bank earnings released Wednesday and Thursday. JPMorgan Chase posted record profit, while Citigroup, Goldman Sachs, Morgan Stanley and Bank of America beat market expectations.
Also on Thursday, data showed that U.S. retail sales rose 0.4% in December, lower than the upwardly revised 0.8% growth in November and short of the 0.5% Dow Jones consensus estimate. The S&P 500 and Nasdaq Composite were little changed, while the Dow Jones Industrial Average lagged.
Overnight, Asia-Pacific markets climbed on the back of Wall Street's rally. U.S. stock futures rose modestly as traders look ahead to more big bank earnings from Morgan Stanley and Bank of America.
— CNBC's Sarah Min contributed to this market report
Europe markets close higher
European markets closed higher on Thursday, with the cross-regional Stoxx 600 provisionally finishing the day 0.93% higher.
Sectors were broadly higher, with household goods leading gains and adding 4.45%. Autos meanwhile dipped 0.45% and retail sales reversed earlier gains to end the day 0.2% lower.
Major regional bourses also ended the day in positive territory, with Germany's DAX adding 0.29%, the French CAC 40 rising 2.14% and the U.K.'s FTSE 100 closing 1.09% higher.
— Sophie Kiderlin
European equities are 'favorite diversifier,' Citi strategist says
David Groman, global equity strategist at Citigroup, told CNBC's "Street Signs Europe" on Thursday that European equities are attractive heading into a strong earnings season.
"Europe is our favorite diversifier in this cyclical rest of world space," Groman said. "I think we maybe are moving past what was peak bearishness in Europe."
Groman noted that just a quarter ago, markets were seeing "recessionary levels of downward earnings revisions," and that the earnings momentum was heading in the wrong direction. However, that's now stabilized ahead of the current earnings season, he added.
"It's not that expectations are super elevated, Europe just needs to do okay to see pretty good price action," Groman said.
French CAC 40 rises 2%, boosted by luxury stocks
France's CAC 40 stock index rose 2% higher in afternoon deals on Thursday as luxury stocks climbed.
LVMH was last 7% higher at 2:40 p.m. London time, sitting atop the French index alongside Gucci-owner Kering and Hermes, which added 6.1% and 4.9% respectively.
The move higher comes as shares of Swiss Cartier-owner Richemont soared Thursday after the company reported a better-than-expected 10% increase in fiscal third-quarter sales.
— Sophie Kiderlin
S&P 500, Nasdaq Composite inch higher Thursday
The S&P 500 and Nasdaq added 0.1% and 0.3%, respectively, on Thursday morning.
Meanwhile, the 30-stock Dow Jones Industrial Average flickered near the flatline.
— Hakyung Kim
Deliveroo shares tick 4% higher following trading update
Deliveroo shares were 4.25% higher at 1:13 p.m. in London after the British food delivery company said earnings would be toward the top end of its guidance range in a Thursday trading update.
The firm said full year earnings before interest, taxes, depreciation and amortization (EBITDA) would be at the higher end of the £110 million ($134.1 million) to £130 million range it previously guided.
Monique Pollard, head of European retail, internet and brands equity research at Citi, said in a note that Deliveroo's revenues, order growth and group gross transaction values (GTV) were in line with consensus expectations, though international GTV was a little weaker than forecast.
Risks to the company include changes to European regulation on gig economy worker status, continued rotation from growth to value stocks by investors, short-term cash burn due to intense competition and rising interest rates, Pollard added.
— Jenni Reid
UK Robinhood rival Freetrade acquired by IG Group
Freetrade, a British rival to popular stock trading app Robinhood, said Thursday that it's been acquired by online investing platform IG Group.
The startup said that it would continue to operate as a commercially standalone entity under its own brand. The deal values Freetrade at £160 million — a 29% discount to its last valuation.
"Together with IG Group's significant resources and backing, this is an exciting opportunity to accelerate our growth and delivery of new products and features," Freetrade CEO Viktor Nebehaj said in a statement.
- Ryan Browne
Zalando shares jump 14% after online retail giant says it will beat its own profit target
Shares of Germany's Zalando soared more than 14% Thursday after the online fashion retailer said it expects to beat its own profit forecasts for 2024, citing strong customer growth driven by marketing and better sell-through.
Zalando now expects to see adjusted earnings before interest and tax of around 510 million euros ($524.7 million), higher than the company's previous forecast of 440 to 480 million euros, it said in a Wednesday statement.
Preliminary figures show that gross merchandise volume rose by 4.5% in 2024 from a year earlier to 15.3 billion euros. Revenue grew by 3.9% in the year to 10.5 billion euros.
UBS analysts on Thursday upgraded Zalando shares to "buy" from "neutral," while Deutsche Bank said sales and profits were better than expected as they reiterated a "buy" rating.
— Sawdah Bhaimiya
Bond market volatility to persist: Liontrust
Investors are expecting government bond markets to continue their wild swings amid polarized politics and yet-to-be-tamed inflation.
"Our overall view is that rates market volatility is here for the foreseeable," said Donald Phillips, head of credit in the multi-asset team at Liontrust.
Benchmark U.S. and U.K. government bond yields had risen by about 30 basis points from the start of the year, only to tumble by 10 to 20 basis points earlier this week. The 10-year U.S. Treasury is trading with a yield of 4.65% while the U.K. 10-year gilt yield is at 4.72%.
Such volatility is likely to remain a market feature as structural issues persist, according to investors.
"Government budgets are too stretched, politics too polarised and inflation too sticky for that rates market volatility to subside any time soon," explained Phillips, who also manages Liontrust's Strategic Bond Fund. "However, we believe that you are being well paid for that volatility with, for example, ten-year yields above 4.5%."
"We believe long-term investors will make good money owning bonds," Phillips added.
— Ganesh Rao
Renault up 4% as hybrids support sales growth
Shares of France's Renault were 3.66% higher in mid-morning deals, after the French automaker said group vehicle sales increased 1.3% year on year in 2024.
Hybrid models saw the largest growth, with sales jumping 45%. Hybrids now account for around a quarter of group sales, with all-electric models at 9%.
Analysts at UBS said the company had ended the year on a "strong note" and looked set to meet its 2024 guidance.
"Through 2024, Renault delivered the best execution amongst [original equipment manufacturers] and maintained a positive tone about its underlying performance," they said, while noting risks ahead from a tougher pricing environment and from a target to reach cash breakeven in its electric vehicle unit Ampere.
Germany's Volkswagen on Tuesday reported a 2.3% fall in year-on-year sales, with China declining 10%.
— Jenni Reid
Luxury stocks pop on jump in Richemont sales
Shares of Cartier owner Richemont jumped on Thursday, pulling other luxury stocks higher, after the Swiss group reported a 10% increase in fiscal third-quarter sales, even as China demand weighed.
Sales rose to 6.2 billion euros ($6.38 billion) at constant exchange rates in the three months to the end of December, which the Swiss luxury brand dubbed its "highest ever" quarterly sales figure.
The results are seen as a positive early signal for the health of Europe's luxury sector over the holiday shopping period following a spell of lackluster performance over recent years.
Richemont shares were up 15.17% by 8:59 a.m. London time, while Christian Dior gained 8.2% and both LVMH and Hermes were around 7.7% and 5% higher, respectively.
— Karen Gilchrist
Europe stocks open higher
European stock markets were higher early Wednesday, with the benchmark Stoxx 600 index up 0.47% at 8:30 a.m. in London.
France's CAC 40 led gains among major bourses, up 1.27% as luxury firms broadly gained following results from Switzerland's Richemont.
Technology stocks were 1.47% higher, with chipmakers boosted by forecast-beating earnings from Taiwan Semiconductor Manufacturing Company.
— Jenni Reid
UK economy grew by less-than-expected 0.1% in November; sterling falls
U.K. gross domestic product increased by 0.1% in November, according to data published by the Office for National Statistics, below a Reuters forecast for 0.2% economic growth.
The British pound extended losses to trade 0.28% down against the U.S. dollar and 0.24% lower against the euro shortly after the release.
Sterling strengthened on Wednesday after cooler-than-expected inflation prints out of the U.K. and U.S. sparked optimism around the U.K. economy and strengthened market bets on Federal Reserve interest rate cuts this year.
— Jenni Reid
Cartier owner Richemont posts 10% quarterly sales rise
Cartier owner Richemont reported a 10% increase in fiscal third-quarter sales even as China demand weighed, in a positive signal for the health of Europe's luxury sector over the holiday shopping period.
Sales rose to 6.2 billion euros ($6.38 billion) at constant exchange rates in the three months to the end of December, which the Swiss luxury brand dubbed its "highest ever" quarterly sales figure. That was well above 1% increase expected by analysts in a consensus cited by RBC, according to Reuters.
— Karen Gilchrist
December retail sales data due out Thursday
The December retail sales report due out Thursday is expected to show a 0.5% increase, down from a 0.7% rise the previous month, according to a Dow Jones consensus estimate.
Excluding autos, it's expected to have risen 0.4% last month, up from a 0.2% gain in the prior reading.
The data is set to release 8:30 a.m. ET.
— Sarah Min
Who'd buy Ubisoft? The top potential suitors
After delaying the launch of its latest Assassin's Creed game and hiring advisors to review its options, Ubisoft has been shrouded in speculation over whether a potential takeover could be in the works.
The French video game publisher last week pushed back the release date for "Assassin's Creed Shadows" to March.
It also appointed advisors to review "transformational strategic and capitalistic options to extract the best value for stakeholders."
Ubisoft said it would "inform the market in accordance with applicable regulations if and once a transaction materializes."
CNBC spoke to industry analysts about which names they think could emerge as potential buyers of the game maker. Click here to read the full story.
- Ryan Browne
European markets: Here are the opening calls
European markets are expected to open in mixed territory Thursday.
The U.K.'s FTSE 100 index is expected to open 9 points higher at 8,306, Germany's DAX down 26 points at 20,595, France's CAC down 15 points at 7,475 and Italy's FTSE MIB up 8 points at 35,705, according to data from IG.
Trading updates are set to come from Whitbread, Deliveroo and Richemont, while Rio Tinto releases its latest operational review. Data releases include German inflation figures and U.K. monthly gross domestic product.
— Holly Ellyatt