This is CNBC's live blog covering European markets.

European markets reversed early losses Thursday afternoon after Prime Minister Liz Truss resigned.

The Stoxx 600 index closed 0.25% higher provisionally, with all major bourses in positive territory. Technology stocks led gains with a 2% rise, with oil and gas up 1.45%.

Sterling gained around 0.7% against the dollar after Truss' stunning stepdown after just 44 days in office, giving her the shortest tenure in British history. Gilt yields initially fell but were later flat on the previous day as speculation began over who would succeed Truss, with a new leader set to be in post in a week.

Truss's package of fiscal policies, announced last month, caused havoc in financial markets due to their mix of tax cuts and higher spending.

Shares in Asia-Pacific closed lower on Thursday. On Wall Street, stocks rose as investors weighed several key earnings reports and kept an eye on the bond market, where Treasury yields continued to climb.

European stocks nudge higher as UK PM resigns

European markets reversed early losses to end the day 0.25% higher, on a day which saw political turbulence in the U.K. culminating in the prime minister's resignation.

The U.K.'s FTSE 100 closed 0.27% higher and the pound gained around 0.7% against the dollar.

France's CAC 40 closed up 0.7% and Germany's DAX index rose 0.2%.

Dutch firm Be Semiconductor led stock gains, rising 15% despite warning of an industry downturn. Meanwhile Ericsson and Nokia slipped 14% and 7.5%, respectively, after both missing analyst profit forecasts.

— Jenni Reid

Stocks on the move: Besi up, Ericsson and Nokia down

Dutch semiconductor firm Besi was the top gainer among European stocks, rising 13% despite reporting lower net income for the first nine months of the year and warning of a "new industry downturn."

At the other end of the index, Swedish telecoms company Ericsson fell 15% after reporting lower earnings and missing analyst forecasts. Nokia dropped 7% after it also failed to hit profit forecasts.

— Jenni Reid

Sterling buoyant and gilt yields lower as UK PM Liz Truss resigns

Sterling is up 0.5% to trade at around $1.1214 early afternoon following the resignation of Liz Truss as U.K. Prime Minister. Government bonds also reacted positively to the news, with 10-year gilt yields falling four basis points to 3.842%.

— Hannah Ward-Glenton

UK Prime Minister Liz Truss resigns

Liz Truss announced she is resigning as British Prime Minister as she was elected "with a mandate for change" but was not able to "deliver that mandate."

Read the full story here.

— Hannah Ward-Glenton

Sterling rallies as UK PM Liz Truss set to speak outside Downing Street

Sterling is up 0.7% against the dollar as the U.K. awaits a statement from Prime Minister Liz Truss.

This follows political chaos in the U.K. and reports from Sky News that she may be about to resign.

— Hannah Ward-Glenton

Market bets on rate hikes would hit the economy, BoE deputy governor says

The Bank of England's Deputy Governor Ben Broadbent told investors that betting on big increases in interest rates would deliver a "pretty material" hit to the economy.

Broadbent said it's unclear how the British government's new energy price cap plan will affect inflationary pressure in the medium term, after new Finance Minister Jeremy Hunt scaled back the original plans.

— Hannah Ward-Glenton

German producer prices above market expectations

Germany's Federal Statistical Office said Thursday morning that producer prices in the country rose by an annual 45.8% in September.

Economists had been expecting a figure of 44.7%, according to Reuters. This adds to concerns that wider inflation figures will keep rising over the coming months.

—Matt Clinch

Nordic telecom companies dip: Ericsson down 12%, Nokia down 5%

Shares of Ericsson dropped 12% following third quarter earnings, while Nokia is down 5% in early trade.

Both companies' operating margins suffered from rising costs and contract delays.

— Hannah Ward-Glenton

European markets: Here are the opening calls

European markets are heading for a negative open on Thursday as investors assessed continuing economic uncertainty.

The U.K.'s FTSE index is expected to open 37 points lower at 6,899, the German DAX down 106 points at 12,635 and the French CAC down 52 points at 5,988, according to data from IG.

Regional markets closed slightly lower Wednesday afternoon as traders digested new inflation data for the U.K. and assessed rate hike expectations and recession fears.

The U.K. reported a rise in the consumer price index to 10.1% Wednesday, matching the 40-year high posted by the Office for National Statistics in July. Food, energy and transport prices drove the increase.

On the data front in Europe, French business climate data for October is due. Earnings are due from Hermes, Kering, L'Oreal, Pernod Ricard, Vivendi, Akzonobel, ABB, Nokia and Volvo Group.

— Holly Ellyatt

CNBC Pro: Chip stocks have been down all year — but one looks 'really inviting', says fund manager

Semiconductor stocks have been beaten down this year, but investors with a longer-term view on the importance of chips to secular trends such as 5G, electrification and artificial intelligence could look to buy the dip.

Hedge fund manager David Neuhauser shares one chip stock he likes.

Pro subscribers can read more here.

— Zavier Ong

Sterling extends losses as UK PM Liz Truss addresses Parliament

Sterling extended its losses against the dollar as U.K. Prime Minister Liz Truss addressed fellow lawmakers for the first time since her new Finance Minister, Jeremy Hunt, scrapped most of the policies in her latest fiscal package.

The pound was down 0.8% to trade at $1.12290 during Truss' speech.

— Hannah Ward-Glenton

UK markets now come with a 'competence risk premium,' economist says

The last couple of weeks have put a "competence risk premium" into the financial markets, Paul Donovan, chief economist at UBS Wealth Management, said on CNBC's "Squawk Box Europe."

"Financial markets have judged the U.K. government to not be as competent as it could've been," Donovan said.

He also said that U.K. inflation rising to 10.1% "should not be disappointing."

— Hannah Ward-Glenton

CNBC Pro: Taking cover in bonds ahead of a recession? BlackRock says that's an 'obsolete' playbook

Recession fears are roiling markets, but the typical playbook of taking cover in sovereign bonds is "obsolete," says BlackRock.

"In this environment, bond vigilantes are back and heralding term premium's return," BlackRock said, adding that it's underweight on government bonds.

The asset manager says that investors can still buy other types of bonds, however.

CNBC Pro subscribers can read more here.

— Weizhen Tan