This was CNBC's live blog covering European markets.

European markets closed lower on Thursday, as global economic uncertainty cast a shadow over monetary policy announcements from the Bank of England, Swiss National Bank and Sweden's Riksbank.

After a muted start, the regional Stoxx 600 closed 0.43% lower, snapping a four-day winning streak.

Top posts

• Shipping giant Hapag-Lloyd posts 2024 profit decline, flags 'challenging' environment | view post
• UK wage growth steady at expected 5.9% ahead of BOE decision | view post
• China's central bank follows U.S. Fed in keeping rates steady as tariff threats pressure yuan | view post
• Norway's $1.8 trillion sovereign wealth fund invests in European property | view post
• Swiss National Bank makes quarter-point interest rate cut | view post
• Sweden's Riksbank holds rates, says outlook stable despite 'dramatic' global developments | view post

Germany's DAX snapped a winning run on Wednesday and shed around another 1.2% on Thursday, while the Stoxx Aerospace and Defense Index was down 2% after five consecutive weeks of significant gains.

Lindsay James, investment strategist at Quilter Investors, told CNBC's "Squawk Box Europe" on Wednesday that there could be a period of "buy the rumor, sell the fact" in European stocks after German lawmakers on Tuesday voted to allow exemptions to the country's longstanding debt rules, unlocking hundreds of billions in defense, infrastructure and climate spending.

The potential for the reform had driven strong gains in German industrial, manufacturing and defense names earlier this month.

Shares of German engineering and defense group Thyssenkrupp lost early gains to decline 4%.

In the U.K., the Bank of England held its key interest rate at 4.5% on Thursday, with the central bank warning of global trade uncertainty arising from new U.S. tariffs. The British pound was 0.3% lower against the dollar.

The Swiss franc was lower against the U.S. dollar after the SNB cut its key interest rate by a quarter percentage point to 0.25%. Swiss annual inflation fell to an almost four-year low of 0.3% in February.

The Riksbank meanwhile opted to hold its policy rate at 2.25%, forecasting inflation would come in between 2% and 3% this year before declining and stabilizing near-target.

Thursday's flurry of European central bank activity comes after the U.S. Federal Reserve on Wednesday held its key rate, while indicating two quarter-percentage-point cuts are likely later this year despite the uncertainty presented by U.S. President Donald Trump's trade policy.

Trump's volatile tariff announcements and threats will also be considered by global central banks for their potential impact on global growth, inflation and currency markets.

U.S. stocks were higher overnight as the major averages looked to build on a Wednesday rally fueled by the Fed's outlook. Stateside, results are due from Nike, FedEx and Micron Technology.

Asia-Pacific markets were mixed after China's central bank kept interest rates steady.

Europe stocks close lower

European markets closed provisionally lower on Thursday, with Germany's DAX lower by around 1.2% and France's CAC 40 down 0.95%.

The regional Stoxx 600 was 0.43% lower, after closing higher for the last four sessions.

— Sawdah Bhaimiya

European leaders push for even more defense spending — despite plans for $867 billion ‘ReArm’ package

The European Union has plans to step up its defense spending in a big way — but some leaders want it to go even further as geopolitical tensions heighten.

The European Commission, the executive arm of the EU, earlier this month proposed measures that could bring about 800 billion euros ($867 billion) in new defense spending. These measures have yet to be approved by the various EU capitals, but have been enough to boost EU defense stocks since the plan was announced. 

The current measures are "an important step in the right direction," but "maybe we need to be more ambitious," Greek Prime Minister Kyriakos Mitsotakis told CNBC's Silvia Amaro on the sidelines of a European Council summit on Thursday.

The ReArm Europe plan, which was announced earlier this month, includes 150 billion euros of loans that member states can access to invest in defense and security capabilities. These funds will, however, only be made available if at least 65% of the cost of production takes place in the EU, Norway or Ukraine. 

Read the full story here

— Sophie Kiderlin, Silvia Amaro

EU delays implementing first retaliatory tariffs on U.S. goods to middle of April

The European Union will delay implementing its first set of tariffs on goods from the U.S. until the middle of April to allow for additional time for discussions with Washington, an EU spokesperson told CNBC Thursday.

"The Commission has decided to align the timing of the two sets of EU countermeasures against US 232 tariffs on EU steel and aluminum," the spokesperson told CNBC.

"The change represents a slight adjustment to the timeline and does not diminish the impact of our response, in particular as the EU continues to prepare for retaliation of up to EUR 26 billion."

The delay "provides additional time for discussions with the US administration," EU spokesperson noted.

Read the full story here

— Sophie Kiderlin, Silvia Amaro, Katrina Bishop

'Path ahead remains murky' after BOE held interest rates: Deutsche Bank

Deutsche Bank's chief U.K. economist, Sanjay Rajay, said the Bank of England's interest rate decision shows the outlook for the future remains uncertain, as concerns grow around the pace of disinflation.

The central bank's monetary policy committee voted to leave interest rates unchanged on Thursday at 4.5%, with an 8-1 majority.

"The MPC has given itself room for flexibility noting that there 'was no presumption that monetary policy was on a pre-set path over the next few meetings.' In our minds, this opens the door to a rate path that deviates from a quarterly pace of rate cuts – at least in the near-term," Rajay said, adding that Deutsche Bank expects to see interest rates continue to fall and drop to 3.25% early next year.

"That said, the path ahead remains murky," Rajay added. "The MPC has given itself more flexibility and optionality to deal with rising near-term CPI – including assessing its impact on potential second-round effects, and ultimately what this means for inflation expectations and pay settlements. Risks, in our mind, are skewed to a more back-loaded easing cycle, with the risk of a brief pause on the rise. "

— Sawdah Bhaimiya

U.S. Stocks open in the red

Stocks retreated on Thursday morning, reversing course from its Wednesday gains.

Shortly after 9:30 a.m. ET, the S&P 500 fell 0.7%, and the Nasdaq Composite slid about 1%. The Dow Jones Industrial Average also pulled back 257 points, or 0.6%.

— Sean Conlon

Unlikely Swiss National Bank will go back to negative interest rates, says economist

Stefan Gerlach, chief economist at EFG Bank, discusses the Swiss National Bank's latest 25-basis-point cut and his outlook for the Swiss economy over the forthcoming year.

Bank of England putting inflation battle above U.S. tariff risk, economist says

"A hawkish set of minutes and the decision to keep bank rate on hold at 4.50%, with only arch-dove Swati Dhingra dissenting, show that the Bank of England is rightly prioritising controlling inflation over the risk to growth from the Oval Office," Andrew Wishart, senior U.K. economist at Capital Economics, said in a note on Thursday.

The Bank of England's Monetary Policy Committee voted in favor of holding rates steady on Thursday, with an 8-1 majority.

— Chloe Taylor

Sterling, U.K. borrowing costs fall after Bank of England decision

The British pound shed 0.3% against the dollar by 12:15 p.m. in London, trading at around $1.2966.

Meanwhile, yields on British government bonds — known as gilts — edged lower.

The yield on 10-year gilts shed 5 basis points, while short- and long-term government borrowing costs also fell.

The markets move took place after the Bank of England held its key interest rate steady at 4.5%.

— Chloe Taylor

Bank of England holds interest rates

The Bank of England left interest rates unchanged Thursday as the U.K. economy contends with uncertainty around global trade and looming stagnation at home.

The widely anticipated decision keeps the central bank's benchmark interest rate at 4.5%.

In a statement, the central bank said that its Monetary Policy Committee voted in favor of leaving rates unchanged with an 8-1 majority. One MPC member voted for a 25-basis-point reduction.

Read the full story here.

— Sophie Kiderlin

Decisive action needed amidst low inflationary environment, says Swiss National Bank chairman

Swiss National Bank Chairman Martin Schlegel discusses the central bank's latest quarter-point interest rate cut.

Read more here.

Sweden's Riksbank holds rates, says outlook stable despite 'dramatic' global developments

Sweden's central bank on Thursday voted to hold its key rate at 2.25% and said it would "remain at this level going forward," after inflation came in above-target at 2.9% in February.

The Riskbank said that, despite "substantial global turbulence" and "dramatic" global developments since its January meeting, it expected its outlook for inflation and economic activity to broadly hold steady.

"It is primarily the reshaping of trade policy and the strong increase in defence expenditure in Europe in the wake of the changed security situation that are significant to economic developments," the Riksbank said in a statement.

The central bank sees inflation coming in between 2% and 3% for the rest of this year before declining and stabilizing close to its 2% target in 2026. Economic growth is forecast at 1.9% annually, up from 1% in 2024.

The Swedish krona was down 0.6% against the U.S. dollar and flat against the euro following the announcement.

— Jenni Reid

Swiss National Bank makes quarter-point interest rate cut

The Swiss National bank on Thursday trimmed its key interest rate by a quarter percentage point to 0.25%, as widely anticipated.

It follows a 50-basis-point cut announced by the central bank in December, which at the time exceeded expectations. That also marked the fourth interest rate reduction from the SNB since Switzerland became the first major economy to ease monetary policy in March of last year.

The rate decision comes as Swiss inflation fell to an almost four-year low of 0.3% on an annual basis in February, according to official figures.

Read the full story here.

— Sophie Kiderlin

Norway’s $1.8 trillion sovereign wealth fund invests in European property

Norway's $1.8 trillion sovereign wealth fund — the largest of its kind in the world — announced new investments in European property on Thursday.

In a new joint venture with British property developer Shaftesbury Capital, the fund's manager Norges Bank Investment Management (NBIM) said it will pay £570 million ($739 million) for a 25% stake in a London property portfolio.

The deal values the portfolio at £2.7 billion, NBIM said. The 1.5 million square feet properties, predominantly used for retail and leisure purposes, are based in the London districts of Covent Garden and Seven Dials.

London-listed shares of Shaftesbury Capital jumped nearly 16% at the market open.

NBIM also said Thursday that it had agreed to pay 240 million euros for a 40% stake in AXA Lifestyle Housing, an owner and operator of student housing and co-living properties in Spain and France.  

— Chloe Taylor

Shipping giant Hapag-Lloyd posts 2024 profit decline, flags 'challenging' environment

German shipping giant Hapag-Lloyd on Thursday reported a 19% slide in annual group profit to $2.59 billion, with CEO Rolf Habben Jansen citing a solid performance in a "challenging market environment."

Revenue rose to $20.67 billion from $19.39 billion, while earnings before interest, taxes, depreciation and amortisation (EBITDA) was 4.2% higher at $5.03 billion.

The company said it expected group EBITDA to range between $2.5 billion and $4 billion in the full-year 2025 period, with the outlook "subject to considerable uncertainty due to the highly volatile development of freight rates and major geopolitical challenges."

The shipping industry is currently contending with global trade uncertainty stemming from the White House, while the busy Red Sea route remains disrupted due to conflict in the Middle East.

— Jenni Reid

UK wage growth steady at expected 5.9% ahead of BOE decision

Average wages in the U.K. increased 5.9% year on year across the November 2024 to January 2025 period, the Office for National Statistics said Thursday.

The rate was steady on the previous three-month period and in line with the forecast of economists polled by Reuters.

Wage growth including bonuses came in at 5.8%. The average regular figure was 6.1% for the private sector and 5.3% in the public sector.

The ONS also released broader labor market data showing the rate of unemployment was steady between November and January at 4.4% for the third reading in a row.

The rate of U.K. wage growth is a key consideration for the Bank of England, which meets Thursday and is expected to hold interest rates.

"The latest figures show that the jobs market is not collapsing as some surveys suggest," Ruth Gregory, deputy chief U.K. economist at Capital Economics, said in a note.

"Yet with wage growth still close to 6.0%, weak employment is not yet feeding through to a marked slowing in pay growth."

"All this leaves the [BOE] in a tricky position. If the jobs market remains weak, then underlying price pressures should eventually fade markedly. But with wage growth still sticky that will increase the Bank's concerns about a resurgence in inflation and keep it on its "gradual and careful" interest rate cutting path."

— Jenni Reid

European markets: here are the opening calls

European stock markets looked set for a mixed open to Thursday's session.

IG data showed the U.K.'s FTSE 100 opening 0.14% lower at 8,703 points, France's CAC 40 opening down 0.05% at 8,176 points, and Germany's DAX opening 0.09% lower at 23,274 points. However, Italy's MIB was seen nudging 0.07% higher to 39,066 points.

— Jenni Reid

Copper prices hit highest level since October

Copper prices on listed on the London Metals Exchange notched their highest level since October.

The three-month LME copper contract was last seen trading 0.46% higher at $10,028.5 per metric ton.

In a note published Monday, Citi analysts forecast strength in copper prices this month amid temporarily stronger U.S. copper import demand, as well as broader concentrate and scrap supply constraints.

— Lee Ying Shan

China’s central bank follows U.S. Fed in keeping rates steady as tariff threats pressure yuan

China kept its key lending rates unchanged on Thursday, as Beijing juggles propping up growth and stabilizing its currency amid mounting trade frictions.

The People's Bank of China kept the 1-year loan prime rate at 3.1% and the 5-year LPR at 3.6%, where they have been since a quarter-percentage-point cut in October.

The rate decision follows the U.S. Federal Reserve's move to hold benchmark interest rates. Fed officials, however, indicated likely half a percentage point of rate cuts through 2025.

Read the full story here.

—Anniek Bao

Weaker growth, higher inflation 'balance each other out' in Fed forecast, Powell says

Fed Chair Powell said the central bank's forecasts for less economic growth and higher inflation in 2025 somewhat offset each other, explaining the fact that the forecast for rate cuts this year stayed at two.

"At the December meeting, the median was two cuts. So you come in and you see, broadly speaking, weaker growth but higher inflation. And they kind of balance [each other] out," he said.

Again, Powell emphasized the forecasts are "highly uncertain."

— Jesse Pound