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European stocks close higher after U.S. Treasury yields retreat; Metro Bank, Alstom plunge

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This is CNBC's live blog covering European markets.

European stocks closed higher Thursday after U.S. Treasury yields pulled back following weaker-than-expected jobs data.

The Stoxx 600 index closed up 0.3% after three negative sessions. Sectors were mixed, with travel stocks up 1.5%, and oil and gas slightly lower.

In volatile early trade, French train manufacturer Alstom plunged 37% after warning about its free cash flow.

London-listed Metro Bank dropped more than 25%, after reports that it is trying to raise £600 million ($727 million) in debt and equity.

Pandora was the top riser, up 12% after hiking its growth targets.

The rate on the 10-year Treasury note slipped from highs last seen in 2007 after payroll processing firm ADP said that private job growth totaled 89,000 for September, well below the 160,000 estimate from Dow Jones, and it seemed to assure investors that the labor market is easing.

Asia-Pacific markets rose overnight after the pullback in Treasury yields.

Pandora shares up 11% on growth upgrade

Jewelry maker and retailer Pandora topped European stock gains Thursday, climbing 10.8% after upgrading its growth targets.

It now targets a like-for-like compound annual growth rate of 4-6% for 2023-2026, up from 3-5%, and between 16 billion Danish krone ($2.256 billion) to 17 billion Danish krone free cash flow generation from 2024-2026.

"Uncertainty is quite high in the macro, but what we've experienced so far this year is actually traffic is very healthy into our channels," CEO Alexander Lacik told CNBC's "Squawk Box Europe."

On the company's new strategy, launched in 2021, Lacik said: "We went back to the roots. Any business that struggles, you have to look yourself in the mirror and say, did we stray? I think Pandora strayed."

"So this is not magic, we went back to the roots. An affordable and desirable proposition. We went back to the charms business, because that's the thrust of where Pandora came from."

Lacik said the company had plans to further drive desirability through marketing, in order to expand its range.

The firm on Thursday also announced plans to enter the Indian market and expand elsewhere in Asia, as it flagged that its growth in China would be slower than initially planned.

— Jenni Reid

Oil prices continue to slide

Oil prices on Thursday continued to retreat from the one-year highs they hit last week.

Global benchmark ICE Brent Crude futures were 1.9% lower at $84.19 a barrel at midday London time, as WTI Crude futures fell 1.96% to $80.87 a barrel.

It follows a sharp drop of more than $5 on Wednesday as markets digested the potential for lower demand, even as the OPEC+ group of oil producers made no changes to their output policy and Saudi Arabia and Russia reaffirmed plans for output cuts.

— Jenni Reid

OPEC+ ‘very concerned’ about oil demand fears, Energy Aspects’ Amrita Sen says

Amrita Sen, founder and director of research at Energy Aspects, discusses the outlook for oil markets, the OPEC+ output policy and Chinese oil demand.

UK’s Metro Bank plunges more than 25%

Shares of Britain's Metro Bank were briefly suspended from trading twice early Thursday, in a volatile start to trade that saw the stock shed more than 29%.

It follows reports that the bank was trying to raise £600 million ($727 million) in debt and equity, according to Reuters. The challenger bank, which launched in 2010, has a market cap of less than £100 million.

Read the full story here.

— Karen Gilchrist

France's Alstom falls 35% as trading resumes

Shares of French train manufacturer Alstom plunged 35% as they opened after a delayed start to Thursday trade, putting the stock on course for its worst performance in at least 20 years, according to LSEG data.

It follows a half-year trading update on Wednesday showing the company now expects negative free cash flow for the year, down from a prior forecast of "significantly positive."

Jenni Reid

Alstom trading suspended, shares set to plunge after cash flow update

French train manufacturer Alstom failed to open Thursday as trading of its shares was suspended.

Shares were set to decline around 35%, according to LSEG data cited by Reuters.

In an update after the market close on Wednesday, Alstom released unaudited half-year results showing its free cash flow had fallen from negative 45 million euros ($47 million) to negative 1.15 billion euros, and is now expected to be in a range of negative 500-750 million euros for the full year, from a prior forecast of "significantly positive."

It attributed the performance to a "steep acceleration of the production ramp-up," a delay to a U.K. project, and a fall in downpayments from the prior year.

— Jenni Reid

CNBC Pro: This bearish fund manager thinks the U.S. is headed for a major debt crisis. Here's what he's buying.

The U.S. is headed for a major debt crisis due to fiscal deficit being at the "worst structural point since World War Two," according to value investor Matthew McLennan.

McLennan, who manages First Eagle's Global Fund, said equity and bond markets are showing signs of "relative complacency" and are yet to digest the full impactions of the state's borrowing program.

The fund manager also named the asset and stock to own to hedge against the risks markets face over the next few quarters.

CNBC Pro subscribers can read more here.

— Ganesh Rao

CNBC Pro: Goldman reveals its brand new 'conviction list' of European stocks — giving one nearly 150% upside

Goldman Sachs has a new list of top stock picks for Europe, which it called its "most differentiated" ideas for the region.

CNBC Pro takes a look at seven of them.

CNBC Pro subscribers can read more here.

— Weizhen Tan

CNBC Pro: Veteran investor says one type of energy company is 'extremely attractive' — naming a stock he likes

The commodities market is a "much more constructive place to invest" right now — and one type of company in the energy sector in particular is "extremely attractive," according to one portfolio manager.

We're "at the beginning of a longer term commodity cycle," Aaron Dunn, co-head of value equity and portfolio manager at Morgan Stanley Investment Management, told CNBC's "Squawk Box Asia" on Wednesday.

He named one stock he likes and others on his radar.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

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 33 points higher at 7,440, Germany's DAX up 55 points at 15,147, France's CAC up 24 points at 7,020 and Italy's FTSE MIB up 80 points at 27,490, according to data from IG. 

Data releases include German trade data for August and French and Spanish industrial output for August.

— Holly Ellyatt

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