This was CNBC's live blog covering European markets.

European markets slipped Thursday as investors digested fresh U.S. inflation data, which came in above expectations.

The pan-European Stoxx 600 closed 0.18% lower, with most sectors and major bourses in the red.

Insurance stocks added 1.06%, as Hurricane Milton's devastating hit to Florida pointed to stronger prospects for the sector. Tech stocks, meanwhile, fell 1%, reversing positive momentum from earlier in the week.

Shares of British drugmaker GSK rose 3.2% after the company struck a deal to pay up to $2.2 billion to resolve a U.S. lawsuit over its heartburn treatment Zantac.

In European data, the German government forecast the country's first two-year recession in almost two decades.

Stateside, U.S. inflation ticked up in September, rising 0.2% over the month and surprising economists, fresh CPI data from the Labor Department showed Thursday.

The annual inflation rate came in at 2.4%. Both readings were 0.1 percentage point above the Dow Jones consensus.

The reading will inform the Federal Reserve's next steps on policy at its November meeting. Fed funds futures trading data suggests a roughly 70% likelihood of a quarter-point cut, according to CME Group's FedWatch tool.

U.S. stocks opened lower, while Asia-Pacific markets closely mostly higher on Thursday, buoyed by gains on Wall Street on Wednesday.

The S&P 500 and Dow Jones Industrial Average reached new records as investors shook off geopolitical concerns and reacted to the release of minutes from the Fed's September meeting, at which it cut its key rate by 50 basis points, and revealed that a "substantial majority of participants" had favored reducing interest rates by the larger amount.

Europe stocks close lower

European stock markets closed lower Thursday, with the Stoxx 600 index sliding 0.18%, continuing the week's choppy trade.

France's CAC 40 and Germany's DAX both shed around 0.23%, while the U.K.'s FTSE 100 dipped 0.07%.

— Jenni Reid

Sterling weakens to one-month low against U.S. dollar

The British pound weakened further Thursday afternoon as investors surveyed the interest rate and economic growth landscape.

Sterling was down 0.2% against the U.S. dollar at $1.3046 at 4:10 p.m. in London, its lowest level for four weeks. A recent rally in the U.K. currency abruptly stalled late last month amid a change in tone in central bank communications.

What had been perceived as a hawkish tilt from the Bank of England (BOE) and more dovish tone from the Federal Reserve at their September meetings has been reassessed amid developments including a hotter-than-expected U.S. inflation print and upbeat comments from BOE Governor Andrew Bailey.

The market is meanwhile awaiting U.K. gross domestic product data out Friday, which comes ahead of a keenly-awaited budget at the end of the month.

U.K. government bond yields were higher Thursday, with the yield on the 10-year gilt up six basis points to 4.242%.

— Jenni Reid

U.S. stocks open lower Thursday

Stocks opened lower Thursday following a sticky inflation report.

The S&P 500 lost 0.3%, while the Nasdaq Composite dropped 0.5%. The Dow Jones Industrial Average declined 0.2%, or 83 points.

— Samantha Subin

US inflation rises more than expected in September

U.S. inflation ticked up in September, rising 0.2% over the month and surprising economists, fresh CPI data from the Labor Department showed Thursday.

The annual inflation rate came in at 2.4%,.

Both readings were 0.1 percentage point above the Dow Jones consensus.

Much of the inflation increase came from a jump in food prices and shelter costs, the Bureau of Labor Statistics said in its release.

— Karen Gilchrist

Fed policy 'too aggressive' for the state of U.S. economy, strategist says

Dhaval Joshi, chief strategist at BCA Research, weighs in on the Federal Reserve's minutes, saying the central bank may have moved too sharply in its initial rate cut.

"The amount of easing that's been priced in is a bit too aggressive for the state of the economy and the jobs market at the moment," Joshi told CNBC's "Squawk Box Europe."

— Karen Gilchrist

Airbus September deliveries down year on year

Airbus delivered 50 aircraft in September, the European planemaker said Thursday, a fall from 55 the previous year.

It takes Airbus deliveries to 497 in the year-to-date, out of its recently downwardly revised target of "around 770."

Analysts at Deutsche Bank and Citi said meeting this target was not impossible, but would require a ramp-up in activity in the final quarter.

The aviation industry is continuing to wade through production challenges and supply chain shortages, leading to hefty order backlogs at the likes of Airbus and Boeing.

Airbus shares were 0.6% higher at 10 a.m. London time.

— Jenni Reid

Mercedes-Benz' sales drop in third quarter

Shares of German carmaker Mercedes-Benz dipped by 0.35% after the company reported a slight drop in third-quarter car sales amid reduced demand, particularly in Asia.

Over the period, the manufacturer sold 503,600 cars, down 1% year-on-year. The group's electric car sales fell 31% to 42,500. In China, sales were down 13%.

— Karen Gilchrist

Stocks on the move: GSK up 6.3%; Taylor Wimpey down 3.4%

Shares of British drugmaker GSK rose to the top of the Stoxx 600 in early deals, adding 6.3%, after the company struck a deal to pay up to $2.2 billion to resolve a U.S. lawsuit over its heartburn treatment Zantac.

On the other end, British homebuilder Taylor Wimpey fell 3.4% amid a wider fall in construction stocks. The sector was down 0.55% by 8:25 a.m. London time.

— Karen Gilchrist

European markets open slightly higher

European markets opened marginally higher Thursday as investors await the latest U.S. inflation data for more signs that price pressures are easing.

The pan-European Stoxx 600 was up 0.15% in opening trade, with sectors and major bourses diverging.

Insurance stocks led gains, up 0.61%, as Hurricane Milton's devastating hit to Florida pointed to stronger prospects for the sector. On the other end, autos shed 0.84% as competition pressures add to continued troubles for European carmakers.

— Karen Gilchrist

Germany downgrades growth outlook

Germany is expecting its first two-year recession in almost two decades, the government said, downgrading its 2024 growth forecast for the euro zone's largest economy.

Economy Minister Robert Habeck predicted late Wednesday that gross domestic product would shrink 0.2% this year, down from an earlier forecast of 0.3% growth.

Separately, retail sales rose 1.6% in August versus the previous month, fresh data showed Thursday.

— Karen Gilchrist

Italgas acquires 2i Rete Gas

Italian natural gas distributor Italgas agreed to buy smaller rival 2i Rete Gas in a deal which will see it invest 15.6 billion euros ($17 billion) in its operations up to 2030.

Italgas CEO Paolo Gallo told CNBC Thursday that the deal would enable it to create a "European champion" in the gas sector.

"Only large players … will be able to support the energy transition and the ambitious targets that the European Union has set," he told CNBC's "Squawk Box Europe."

— Karen Gilchrist

China's central bank launches $71 billion liquidity tool for stock markets

China's central bank announced it would start accepting applications from financial institutions to join a newly created liquidity tool to help facilitate investors to buy shares.

Eligible security firms, fund companies and insurers are eligible to apply to the "swap scheme" — initially worth 500 billion yuan ($70.7 billion) — to get easier access to funding to buy stocks, People's Bank of China said.

— Dylan Butts

CNBC Pro: These cheap stocks are outperforming, and analysts give 5 more than 20% upside

Markets just keep rallying this year, with the S&P 500 up nearly 22% year-to-date and the Nasdaq jumping around 21%. In global stocks, the MSCI World index is around 16% higher.

Many on Wall Street expect the trend to continue. Goldman Sachs, Morgan Stanley and others all see the S&P 500 around 6,000 by the end of the year, up from around 5,730 on Tuesday.

With markets already running high, CNBC Pro screened for global stocks that have outperformed the MSCI World index, but still look cheap based on their forward price-to-earnings ratios.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Rio Tinto on pace for longest losing streak in more than three years

Shares of Rio Tinto fell 0.5%% in afternoon trading, putting the stock on track for its eighth consecutive day of losses. If the stock closes lower, this will mark its longest losing streak since March 23, 2021, when it saw eight straight days in the red.

The move comes after the miner announced it's acquiring fellow miner Arcadium Lithium in an all-cash transaction for $5.85 per share. Shares of that company surged more than 30% during Wednesday's session.

— Sean Conlon

European markets: Here are the opening calls

European markets are expected to open higher Thursday.

The U.K.'s FTSE 100 index is expected to open 29 points higher at 8,318, Germany's DAX up 41 points at 19,299, France's CAC up 7 points at 7,574 and Italy's FTSE MIB up 27 points at 33,856, according to data from IG.

Data releases to watch out for include the IMF's latest World Economic Outlook report, Italy's industrial production figures and U.S. inflation data out later in the day. Givaudan publishes third-quarter sales figures.

— Holly Ellyatt