This is CNBC's live blog covering European markets.

European markets closed slightly higher on Friday as traders reacted to the European Central Bank's suggestion that its latest hike may be its last.

The regional Stoxx 600 ended up 0.2%, with most sectors and major bourses in positive territory. Household goods led the gains, up by 1.4%, while luxury stocks got a boost from Chinese retail sales figures.

The Stoxx 600 index climbed 1.5% Thursday, its best session since the start of June, according to LSED figures.

The ECB increased interest rates by 25 basis points, a 10th consecutive hike taking its main rate to a record high of 4%. New staff projections revised its inflation forecasts for this year and next slightly higher, to 5.6% and 3.2%, though nudged its 2025 forecast lower, from 2.2% to 2.1%. Staff also revised economic growth expectations for the euro zone lower.

But perhaps the biggest development came in a firm suggestion ECB Governing Council members do not expect further rate hikes at this time, and that rates may be held steady for some time.

"Based on its current assessment, the Governing Council considers that the key ECB interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to the target," the central bank said in a statement.

Asia-Pacific stock markets were higher Friday, boosted by Chinese economic data, which beat expectations. U.S. stocks ticked lower, but Wall Street is still heading for a winning week.

Europe stocks close slightly higher

European markets closed slightly higher on Friday, with household goods, mining and autos stocks leading gains.

The regional Stoxx 600 ended up 0.2%, with most sectors and major bourses in positive territory.

— Sam Meredith

U.S. stocks open lower

The major averages were lower at the open Friday.

The Dow Jones Industrial Average fell 54 points, or 0.16%. S&P 500 declined by 0.34% and Nasdaq Composite were off 0.29%.

— Sarah Min

Oil to $100? Some analysts expect a return to triple digits

Some energy analysts expect oil prices to surpass $100 a barrel this year, citing supply cuts from Saudi Arabia and Russia and a growing consensus that the current cycle of tightening may soon come to an end.

International benchmark Brent crude futures traded 0.4% lower at $93.29 a barrel on Friday afternoon in London, while U.S. West Texas Intermediate futures dipped 0.4% to trade at $89.83.

Both Brent and WTI settled at their highest respective levels of the year on Thursday.

"Should OPEC+ maintain the ongoing supply cuts through year-end against Asia's positive demand backdrop, we now believe Brent prices could spike past $100/bbl before 2024," analysts at Bank of America said in a research note.

— Sam Meredith

H&M falls 5% after sales miss

Shares of H&M slumped 5% after the retailer reported "flattish" sales in local currencies for the second quarter, below a forecast of 5% growth in a Reuters poll of analysts.

"Sales in the second quarter were affected by unfavourable weather conditions compared to the corresponding period last year on several of the H&M group's large markets. June has got off to a good start," the company said in a statement.

— Jenni Reid

Pausing interest rate hikes now would be the right decision from the ECB, strategist says

Mabrouk Chetouane, head of global market strategy at Natixis, says a pause in the European Central Bank's rate-hiking cycle is necessary to assess the state of European economies.

Arm’s valuation is one of the risk points for many investors, analyst says

Ben Barringer, equity research analyst at Quilter Cheviot, discusses Arm's initial public offering.

Stocks on the move: Games Workshop up 9%, luxury gains

Games Workshop, the U.K.-based maker of Warhammer, was 9% higher at 9:05 a.m. London time after releasing a trading update indicating profit before tax was higher in the three months to Aug. 27, and ahead of its expectations.

The company also declared a dividend of 50 pence ($0.62) per share, taking dividends for the financial year to £1.95 per share, up from £1.20 in the prior period.

Luxury stocks posted gains, buoyed by solid Chinese retail sales figures.

Richemont was up by 3.5% and LVMH shares added 2.4%.

— Jenni Reid

Euro nudges higher after ECB jolt

The euro ticked slightly higher Friday morning after Thursday on the back of the European Central Bank's suggestion it may be done with interest rate rises as it hiked by 25 basis points.

The euro fell 0.8% against the U.S. dollar Thursday, its worst day since July 27, according to LSEG data.

It was 0.2% higher at $1.0661 at 8:56 a.m. Frankfurt time Friday.

European bond yields, which fell on the ECB announcement, were also slightly higher Friday.

Strategists at Dutch bank ING said a "dovish ECB hike" had combined with a dollar rally on strong U.S. activity data.

"With a full 25bp hike already in the price by year-end, the ECB had to move away from dovish language to support the euro, while quite the opposite happened," Chris Turner and Francesco Pesole said in a note.

"Markets have taken on board the notion that the ECB has likely peaked, meaning that data releases in the eurozone should lose some degree of market relevance ... Expect EUR/USD short-term rate differentials to be an even closer function of US activity prints from now on."

— Jenni Reid

Europe stocks head for strong open

European stocks were seen advancing early Friday, according to IG data.

The U.K.'s FTSE 100 was set to open 27 points higher at 7,722 points; Germany's DAX 83 points higher at 15,905; and France's CAC 40 up by 43 points at 7,369.

— Jenni Reid

Oil prices rally to 10-month high following better-than-expected China data

Oil prices rose to 10-month highs on the back of stronger-than-expected August data on Chinese retail sales and industrial production.

Global benchmark Brent traded 0.92% higher at $94.56 a barrel, while the U.S. West Texas Intermediate futures stood 1.02% higher at $91.08 per barrel.

China's retail sales grew 4.6% compared to a year ago, better than expectations of a 3% growth forecast by a Reuters poll. Similarly, industrial production grew by 4.5% in August from a year ago, also better than the 3.9% forecast.

— Lee Ying Shan

China August retail sales and factory output beat expectations, but fixed asset investment misses

China's retail sales and industrial production picked up in August, with better-than-expected growth, according to National Bureau of Statistics data released Friday.

Retail sales grew by 4.6% in August from a year ago, beating expectations for 3% growth forecast by a Reuters poll. The increase was also faster than the 2.5% year-on-year pace in July.

Industrial production also rose by 4.5% in August from a year ago, better than the 3.9% forecast and faster than the 3.7% increase reported for July.

Fixed asset investment, however, grew by 3.2% year-on-year in August on a year-to-date basis. That missed expectations for a 3.3% increase and was slower than the 3.4% pace reported as of July.

Read the full story here.

— Evelyn Cheng

CNBC Pro: Alibaba and more: CLSA names 3 of the ‘cheapest AI plays’ worldwide — giving two over 50% upside

Analysts at capital markets and investment group CLSA picked three global stocks they expect will benefit from the "lucrative potential" of artificial intelligence.

"We estimate the global AI market could reach $1 trillion by 2026, with generative AI, the next big driver of productivity and innovation, making up $100 billion," the analysts said in a note.

CNBC Pro subscribers can read more here.

— Amala Balakrishner