This is CNBC's live blog covering European markets.

European markets closed lower on Wednesday as investors digested the latest U.S. inflation data and how it could affect the U.S. Federal Reserve's monetary policy.

The pan-European Stoxx 600 index provisionally ended down 0.5%, with major bourses and most sectors in negative territory. Food and beverages stocks led the losses, down 1.4%.

Tech stocks, meanwhile, bucked the downward trend to close 1.3% higher.

U.S. inflation rose 4.9% in April compared to a year ago, which is less than expected. Analysts polled by Dow Jones expected a 0.4% month-over-month increase in inflation and a 5% rise from a year ago. The increase shows prices are still sticky, even after a year's worth of Federal Reserve interest rate increases.

Markets are also looking out for an interest rate decision by the Bank of England Thursday, which is expected to be the 12th consecutive hike by the central bank.

U.S. stock futures ticked upward on Wednesday as investors considered the inflation data, while Asia-Pacific markets closed lower.

U.S. inflation rose less than expected in April

April consumer prices increased 4.9% in the U.S. compared to a year ago, which is less than the 5% annual increase expected by economists polled by Dow Jones.

U.S. stock futures saw an uplift after the reading was tamer than anticipated.

— Hannah Ward-Glenton

Bank of England will need to increase inflation forecasts, Citi strategist says

Akshay Singal, EMEA head of short-term interest rate trading at Citi, says the Bank of England will need to further revise its inflation forecasts in order to restore market trust.

ECB rate hikes will end this year, Greek central bank chief says

Greece's central bank chief, Yannis Stournaras, told a news website that the European Central Bank would stop hiking interest rates this year "if nothing changes dramatically," according to a Reuters report.

"We can say that rate hikes will end in 2023," Stournaras reportedly said.

"Rates will remain where they are today or higher for some time until inflation comes very close to the 2% target," he added.

— Hannah Ward-Glenton

A.I. development is happening faster than anything we have ever seen, says Databricks CEO

Ali Ghodsi, CEO of Databricks, discusses the developments of AI in health care, technology and jobs and who will benefit from its rise.

Stocks making gains: Evotec gains 11%, Alcon up 7%

German drugmaker Evotec topped the Stoxx 600 index in morning trading after gaining 10.8% on news of a new partnership. The company's Seattle-based subsidiary, Just-Evotec Biologics, will enter into a partnership with Novartis' Sandoz to develop and produce medicines, Evotec said.

Swiss-American company Alcon saw shares jump 7% on better-than-expected first-quarter earnings.

Sales rose to $2.33 billion, higher than the $2.23 billion anticipated by analysts, as reported by Reuters.

— Hannah Ward-Glenton

Slowing growth could make long-dated bonds attractive this summer, SocGen’s head of fixed income says

Guy Stear, head of fixed income research at Societe Generale, discusses credit market opportunities and the interest rate outlook.

Artificial intelligence is real and unstoppable, investment officer says

Global X Chief Investment Officer Jon Maier discusses how investors can make the most of the artificial intelligence boom.

Health-care stocks fall to bottom of Stoxx 600; Siemens Healthineers down 7%

Health-care stocks fell to the bottom of the Stoxx 600 index at the start of trading, with Swedish Orphan Biovitrum dropping as much as 15.8% on news it would acquire a U.S.-based biopharmaceutical company.

Sobi said it entered an agreement to acquire CTI BioPharma in a $1.7 billion deal, with the Stockholm-based drugmaker to offer $9.10 per CTI share.

Shares of Siemens Healthineers fell 7% after the company posted a 30% drop in second-quarter operating profit. As a result, it will be discontinuing its heart surgery robot business. It cited reduced demand for Covid-19 tests as the cause of its lagging profits.

— Hannah Ward-Glenton

SBB shares bounce back after plunging on debt concerns

Shares of Swedish real estate company SBB rebounded at the start of trading after plummeting Monday and Tuesday on debt concerns.

SBB topped the Stoxx 600 index Wednesday, with the share price gaining 12% at the start of the session.

S&P Global cut its long-term credit rating for the company at the start of the week, prompting SBB to halt dividend payments and scrap a planned share issue.

Shares tumbled as a result, losing 20% Monday and dropping a similar amount Tuesday. The slump dented the share prices of other Swedish real estate companies, including Fastighets AB Balder, Wallenstam, Sagax and Fabege.

All of the companies were trading in mildly positive territory around 8:30 a.m. London time Wednesday.

— Hannah Ward-Glenton

CNBC Pro: This under-the-radar EV charging stock could soar by 100%, Bank of America says

Bank of America has doubled down on its buy rating for an electric vehicle charging company and expects its shares to rise by more than 100% over the next 12 months to $5.5 a share.

The EV charging firm is set to release two new models of supercharges, which are expected to power sales in the second half of the year.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Inflation will 'take time' to retreat down to 2%, New York Fed President John Williams says

The Federal Reserve's increases to interest rates will need more time to work through the economy before inflation abates to a 2% target, according to New York Fed President John Williams.

"Because of the lag between policy actions and their effects, it will take time for the [Federal Open Market Committee's] actions to restore balance to the economy and return inflation to our 2% target," Williams said at the Economic Club of New York on Tuesday.

Williams didn't give any forward guidance as to what the central bank might do at the next FOMC meeting. His remarks did little to move markets in either direction, with all three major indexes still trading lower midday. The Dow Jones Industrial Average lost 75 points, or 0.2%, while the S&P 500 and Nasdaq were trading 0.4% and 0.6% lower, respectively.

— Brian Evans, Jeff Cox

CNBC Pro: 'Too cheap to ignore': Bernstein predicts more than big upside for these clean-energy stocks

Clean energy stocks have struggled since the pandemic, with negative returns each year since 2021.

However, according to the investment bank Bernstein, the sour sentiment towards the sector may be short-lived.

Analysts at the bank now predict more than 35% upside for 3 clean-energy stocks, two of which trade on U.S. stock exchanges.

CNBC Pro subscribers can read more here.

— Ganesh Rao

European markets: Here are the opening calls

European markets are heading for a higher open Wednesday, with investors looking ahead to the latest U.S. inflation reading.

The U.K.'s FTSE 100 index is expected to open 10 points higher at 7,759, Germany's DAX 16 points higher at 15,952, France's CAC up 13 points at 7,397 and Italy's FTSE MIB 42 points higher at 27,159, according to data from IG.

Earnings are set to come from Asos, Wetherspoons, Adecco, Continental, E.On, Heidelberg materials, Siemens Healthineers, Tui, Credit Agricole and Telecom Italia. There are no major European data releases.

— Holly Ellyatt