This is CNBC's live blog covering European markets.

European markets closed lower on Thursday amid a cooling of the positive sentiment seen earlier in the week after the release of positive data from the U.S. and China.

The pan-European Stoxx 600 index closed down 0.7%, with the majority of sectors and major bourses ending the session in negative territory. Oil and gas stocks led losses, shedding 2.7% on the back of weaker oil prices, while utilities were a rare outlier adding 1.1%.

A soft U.S. inflation reading on Tuesday boosted hopes that the Federal Reserve is nearing the end of its interest rate-hiking cycle. And there was upbeat economic data from China, which reported better-than-expected retail sales and industrial data for October. 

In other news, U.S. President Joe Biden and China's President Xi Jinping met in person in San Francisco on Wednesday, marking the first meeting of the leaders in about a year. The leaders agreed to resume high-level military communication, according to both countries, but Taiwan remains a sticking point.

At the post-talks presser yesterday, Biden reiterated the U.S. position that Taiwan maintains its sovereignty, despite China's claims to the contrary. Beijing considers Taiwan part of its territory, with no right to independently conduct diplomatic relations. 

Earnings continue to drive individual share price movement in Europe, with Siemens among the big names reporting before the bell on Thursday.

Overnight, Hong Kong stocks led declines in the Asia-Pacific region on Thursday, while U.S. stocks moved lower Thursday as traders took a breather from November's red-hot rally.

U.S. stocks move lower

U.S. stocks moved lower Thursday as traders took a breather from November's red-hot rally.

The Dow Jones Industrial Average was down 0.2% in early deals, while the S&P 500 dipped 0.1% and the Nasdaq Composite slid 0.2%.

— Karen Gilchrist

European losses deepen in afternoon trade

The pan-European Stoxx 600 index was down 0.5% by early afternoon, with oil and gas stocks shedding 1.8% on the back of weaker oil prices, while utilities added 1.1%.

Mars’ $662 million acquisition bid sends shares of Britain’s Hotel Chocolat soaring 160%

A $662 million acquisition bid from U.S. food giant Mars sent shares of British chocolatier Hotel Chocolat surging more than 160% on Thursday.

Hotel Chocolat, which was established 20 years ago to bring ethical, affordable luxury chocolate to the high street, said that the deal would allow the brand to expand internationally "further and faster."

London-listed Hotel Chocolat is primarily U.K.-based, with 124 shops domestically and several others overseas.

Read the full story here.

Biggest movers: Hellofresh down 22%, Burberry down 9%, Embracer up 12%, Siemens up 5%

Hellofresh shares plummeted 22% on Thursday morning after the German meal kit delivery company cut its annual core profit forecast on the back of weak sales growth and rising costs in North America.

Burberry shares dropped 9% after the British luxury fashion brand warned that it may miss its annual revenue forecast amid a global spending slowdown.

At the top of the Stoxx 600 index, shares Swedish games developer Embracer Group jumped more than 12% after the company beat quarterly profit expectations and confirmed its full-year forecast.

Siemens shares climbed more than 5% after the German industrial conglomerate posted record-breaking quarterly earnings.

- Elliot Smith

Negative open for Europe

European stocks opened in slightly negative territory on Thursday.

The pan-European Stoxx 600 index was down 0.2% in early trade, with chemicals shedding 0.7% to lead losses while utilities gained 0.6%.

Siemens beats earnings forecasts, says sales growth to slow in 2024

Siemens on Thursday posted a 10% rise in revenue growth for its fiscal fourth quarter to a record high of 21.4 billion euros ($23.2 billion), beating forecasts, but expects a slowdown in 2024.

The German industrial conglomerate projects sales growth of 4-8% over the next 12 months, down from the 11% increase recorded for the 2023 fiscal year that ended in September, due primarily to a muted outlook for its industrial automation division.

However, the industrial powerhouse enjoyed record quarterly and full-year results as it closed out the fiscal year.

Industrial profit grew 7% to a record 3.4 billion euros in the fourth quarter, above a company-compiled forecast of 3.34 billion euros, to notch a record high of 11.4 billion euros for the year.

Net income was 1.9 billion euros for the quarter, taking the full-year figure to a historic high of 8.5 billion euros, while free cash flow also notched a record 10 billion euros for the full year.

Read the full story here.

- Elliot Smith

CNBC Pro: UBS expects the Fed to halve interest rates next year. Here are 3 of their preferred trades

UBS has highlighted several stock ideas it favors for 2024, as it forecasts massive cuts for interest rates next year.

The investment bank expects the U.S. will see slower economic growth and strong disinflation leading to an interest rate cut of 275 basis points. That would bring the Federal Funds Rate down from the current range of 5.25% and 5.5% to between 2.50% and 2.75%.

Given the economic outlook, UBS strategists recommend a number of trades to clients for 2024. CNBC Pro has highlighted three of them. Subscribers can read more here.

— Ganesh Rao

CNBC Pro: 'Pretty inexpensive relative to earnings growth': Morgan Stanley is bullish on this Magnificent Seven stock

Shares in this tech giantare set to jump over 10% in the next 12 months, according to Brian Nowak, an equity analyst at Morgan Stanley.

The U.S. investment bank's price target on the stock – gives it potential upside of around 11.5%.

"What we really liked about [the stock] is we think the market is still under appreciating the durability of their revenue growth in 2024 and 2025," he told CNBC's "Street Signs Asia" on Wednesday.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

European markets: Here are the opening calls

European markets are expected to open in negative territory Thursday.

The U.K.'s FTSE 100 index is expected to open 8 points lower at 7,456, Germany's DAX down 33 points at 15,713, France's CAC down 17 points at 7,192 and Italy's FTSE MIB down 114 points at 29,201, according to data from IG. 

Earnings are set to come from Siemens, Aegon, Premier Foods, Burberry, Aviva, Smiths Group and United Utilities.

— Holly Ellyatt