
This was CNBC's live blog covering European markets.
European markets closed higher on Wednesday as investors assessed cooler-than-expected inflation prints from the U.S. and U.K.
The pan-European Stoxx 600 closed 1.3% higher, snapping a three-day losing streak and clocking its best performance since Sept. 19, 2024. Nearly all sectors were in the green, led by retail stocks, which rose 2.7%.
London's FTSE 100 gained 1.2% and U.K. government bond yields dropped sharply after official data showed U.K. inflation fell to 2.5% in December. Economists polled by Reuters had anticipated the reading would remain unchanged from the 2.6% print of November.
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The 10-year gilt yield, which had been trading at its highest level since 2008, was last down 16 basis points at 4.725%, its lowest level in a week. The 2-year yield fell 16 basis points to 4.44%.
U.K. housebuilders, sensitive to interest rate expectations, were among the top performers. Vistry Group gained 15.7% after issuing a trading update reaffirming profit guidance it lowered in December.
U.S. stocks also surged after U.S. consumer price inflation came in just below expectations at 3.2% on a core basis, which excludes food and energy. The headline annual reading came in line with the 2.9% forecast in a Dow Jones poll.
Money Report
Sentiment was also buoyed stateside by a flurry of strong big bank earnings. JPMorgan Chase posted record profit, while Citigroup and Goldman Sachs beat market expectations.
Clarification: This story has been updated to reflect that by 5 p.m. London time, the Stoxx 600 had posted its best session in four months.
Europe stocks close higher
The Stoxx 600 index closed 1.33% higher on Wednesday as all sectors bar household goods rose.
Germany's DAX was among the top-performing bourses, up 1.5%, while France's CAC 40 rose 0.69%.
— Jenni Reid
U.S. stocks rise Wednesday
U.S. stocks kicked off Wednesday's trading session in the green.
The Dow Jones Industrial Average climbed 647 points, or 1.5%. The S&P 500 advanced 1.4%, while the Nasdaq Composite gained 1.7%.
— Hakyung Kim
Europe stocks jump after U.S. consumer inflation report
European stocks on the regional Stoxx 600 index were 1.2% higher at 2:10 p.m. London time, building on earlier gains after U.S. inflation came in slightly cooler than forecast.
The euro and sterling climbed 0.27% and 0.63% against the U.S. dollar, respectively, as investors eyed the potential for a more dovish Federal Reserve this year.
"This [inflation] report supports the view that the pricing out of rate cuts this year has gone a bit too far, and that when the data turns lower again, as it did after Q1 last year, some extra easing will be put back on the table," Kyle Chapman, FX markets analyst at Ballinger Group, said in emailed comments.
Market pricing had suggested the potential for just one quarter-point rate cut this year from the Fed, which moved back toward two cuts shortly after the print.
— Jenni Reid
Bayer ordered to pay $100 million over toxic chemicals at Washington school
German biotechnology giant Bayer on Tuesday was ordered to pay $100 million to four plaintiffs who said they were harmed by exposure to toxic chemicals at a school in Monroe, Washington.
The individuals said they had been exposed to polychlorinated biphenyls (PCBs) in products manufactured by Monsanto — a company acquired by Bayer in 2018 — at the Sky Valley Education Center in Washington state.
While the jury ordered Bayer to pay damages to four people on Tuesday, it rejected claims brought by 11 others after alleged PCB exposure at the school.
Since its acquisition of Monsanto, Bayer has faced a myriad of legal challenges in the U.S. relating to health problems said to be linked to chemicals in Monsanto products.
According to news agency Reuters, around 125,000 lawsuits have been brought against Monsanto's Roundup weedkiller, leading to a $10.9 billion settlement in 2020 and a string of multimillion-dollar court-ordered payouts.
A spokesperson for Monsanto said in a statement following Tuesday's verdict that the firm would pursue post-trial motions and, if necessary, an appeal to "get the adverse verdict overturned or reduce the excessive damages awarded."
"The objective evidence in this case, including blood, air and other tests, demonstrated that PCB levels were low or non-existent and could not be the cause of the injuries alleged in the case," the spokesperson said.
Shares of Bayer were 0.7% higher at 8:47 a.m. London time.
— Chloe Taylor
UK government borrowing costs fall
Yields on British gilts — U.K. government bonds — fell across the board on Wednesday morning, after inflation data indicated price rises cooled in Britain last month.
The yields on 2 and 5-year gilts were down nine basis points at 9:08 a.m. London time, while longer-term borrowing costs also eased.
Borrowing costs for the U.K. government had surged to multi-year highs in recent weeks, as traders reacted to weak economic data out of Britain.
— Chloe Taylor
UK inflation slows to 2.5% in December

U.K. inflation fell to a lower-than-expected 2.5% in December, according to data released by the Office for National Statistics on Wednesday.
The consumer price index (CPI) rose to 2.6% in November, with economists polled by Reuters expecting the December reading to stay unchanged.
— Holly Ellyatt
UK business confidence drops
Business confidence in Britain plummeted in the fourth quarter of 2024, according to a new survey from the Institute of Chartered Accountants in England and Wales (ICAEW).
The poll of business leaders found that sentiment was at its lowest since the final three months of 2022, in the aftermath of former Prime Minister Liz Truss' so-called "mini budget" crisis.
The ICAEW said Wednesday that its respondents had "record concerns" over their tax burdens and weaker domestic sales growth, following the new government's tax-raising fiscal policy changes.
Earlier this month, a separate survey by the British Chambers of Commerce also found that business confidence had fallen to its lowest level since the mini budget, which saw Truss announce sweeping tax cuts.
— Chloe Taylor
Japan's 10-year government bond yield rises to 13-year high amid global bond sell-off
The yield on Japan's benchmark 10-year government bond rose to 1.239, its highest since April 2011, data from LSEG showed.
Similarly, Japan's 40-year government bond yield rose to 2.755, its highest on record since 2007. The move comes amid a global selloff in government bonds.
The Japanese yen strengthened for a fourth straight day, currently trading at 157.45 against the greenback.
— Lee Ying Shan
CNBC Pro: Tech stocks ruled in 2024. One pro picks 3 under-the-radar stocks to play this year
Tech stocks continued to reign supreme among investors in 2024 with many investors favoring some of the so-called Magnificent Seven stocks of Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla, as well as other lesser-known small- and medium-sized companies.
Principal Asset Management's Martin Frandsen continues to see potential in the Magnificent Seven this year, but also sees value in other stocks within the sector.
Elsewhere, Michele Schneider, chief market strategist at Marketgauge.com sees opportunities in a range of high-growth sectors that are "poised to offer substantial returns for strategic reallocations of undervalued assets."
She also revealed three tech stocks she's betting on right now.
CNBC Pro subscribers can read more here.
— Amala Balakrishner
SEC sues Elon Musk for alleged failure to properly disclose Twitter ownership

The SEC filed a lawsuit against Elon Musk on Tuesday, alleging that the billionaire violated securities law in 2022 by acquiring Twitter shares at "artificially low prices."
Musk bought Twitter in 2022 for $44 billion. Before acquiring the company he held a position in Twitter of greater than 5%, which would have required public disclosure. However, the SEC complaint said that Musk didn't properly follow disclosure rules, "allowing him to underpay by at least $150 million for shares he purchased after his financial beneficial ownership report was due."
Read the developing story and allegations here.
— Ari Levy, Lisa Kailai Han
Bank stocks rally as investors await earnings

Bank stocks took a leg up on Tuesday as investors readied for a bevy of earnings from companies in the sector this week.
The SPDR S&P Regional Banking ETF (KRE) and the SPDR S&P Bank ETF (KBE) each popped more than 3% in the session. Both posted their best day since November.
With those gains, the KRE and KBE have risen nearly 5% and about 4.5%, respectively, since the week began.
Large banks kick off the new earnings season this week, with Goldman Sachs, JPMorgan Chase, Citigroup, and Wells Fargo all slated to report on Wednesday. Bank of America and Morgan Stanley are expected to follow on Thursday.
— Alex Harring
European markets: Here are the opening calls
European markets are expected to open in mixed territory Thursday.
The U.K.'s FTSE 100 index is expected to open 9 points higher at 8,306, Germany's DAX down 26 points at 20,595, France's CAC down 15 points at 7,475 and Italy's FTSE MIB up 8 points at 35,705, according to data from IG.
Trading updates are set to come from Whitbread, Deliveroo and Richemont, while Rio Tinto releases its latest operational review. Data releases include German inflation figures and U.K. monthly gross domestic product.
— Holly Ellyatt