This was CNBC's live blog covering European markets.

European markets closed higher on Wednesday, as traders digested corporate updates and the latest U.S. inflation data.

The pan-European Stoxx 600 index closed 0.28% higher, rebounding after snapping an eight-session winning streak on Tuesday. Media stocks led the gains up 1.4%, while retail stocks fell 1.7%.

Spanish clothing giant Inditex dragged on the sector, ending the session 6.5% lower, after the Zara owner posted interim nine-month and quarterly results. The fashion retailer flagged that its revenues between Nov. 1 and to Dec. 9 jumped 9% from the same period of last year on a constant currency basis.

German online retailer Zalando, meanwhile, tumbled as much as 10% after it agreed to acquire the fashion group About You, before reversing losses. Shares closed 2.2% higher, jumping shortly before the market close.

Stateside, November's consumer price index, which tracks a basket of goods and services, was in line with expectations. The reading showed a 0.3% rise from October and 2.7% increase from a year ago. Excluding volatile food and energy prices, core CPI increased 0.3% on the month and 3.3% on an annual basis.

It is thought November's CPI reading should keep the Federal Reserve on track to cut interest rates at its December meeting next week.

Asia-Pacific markets were mixed Wednesday, after major Wall Street benchmarks declined Tuesday ahead of the data, while U.S. stocks were higher at the open.

Trump will be net positive for airline industry amid significant challenges, IATA head Walsh says

President-elect Donald Trump is set to be a "net positive" for aviation as the industry navigates a multitude of geopolitical and supply chain challenges, Willie Walsh, director general of the International Air Transport Association (IATA), told CNBC's "Squawk Box Europe."

"The Trump administration has been clear that they want to pump more oil, which I think will be a positive... we see the oil price actually being a net positive for both the economy and for the industry," Walsh said.

"I think if you look at the first Trump administration, you can see that he was very supportive of the airline industry in the U.S., moved very quickly to secure the industry during the pandemic period. I think his approach to regulation is also a breath of fresh air. We've seen some very heavy handed regulation by the current Biden administration, so again, I would see Trump being a net positive."

Walsh added that the geopolitical environment was the most challenging he had seen in his 45 years in the industry, but that the outlook was generally positive except for the supply chain problems which are afflicting carriers around the world.

"That really is something that's, I think, been underestimated by the market. Hopefully we'll see some pressure come on the key suppliers to finally get their act together," Walsh told CNBC.

— Jenni Reid

U.S. stocks open in the green

Stocks inched higher on Wednesday morning.

The S&P 500 rose 0.5%, and the Nasdaq Composite rose 0.8%. Meanwhile, the Dow Jones Industrial Average also rose 76 points, or 0.2%.

— Sean Conlon

Europe's Stoxx 600 moves higher after U.S. inflation data

Europe's benchmark Stoxx 600 index traded 0.3% higher shortly after highly anticipated U.S. inflation data came in as expected, extending gains from earlier in the session.

November's U.S. consumer price index, which tracks a basket of goods and services, showed a 0.3% rise from October and 2.7% increase from a year ago. Excluding volatile food and energy prices, core CPI increased 0.3% on the month and 3.3% on an annual basis.

— Sam Meredith

CPI report for November comes in line with expectations

Inflation rose slightly in November, matching expectations.

The consumer price index rose 0.3% month over month and 2.7% year on year for November. That is in line with what economists polled by Dow Jones anticipated.

Core CPI, which strips out food and energy, increased 0.3% month over month. Year over year, it advanced 3.3%. Both matched expectations.

— Fred Imbert

New German government must change their priorities — rather than their rules, fund manager says

Germany's next government should focus on changing its priorities rather than tweaking its fiscal rules, according to Henning Gebhardt, partner and fund manager at Hollyhedge Consult.

His comments come shortly after Reuters reported German Chancellor Olaf Scholz is set on Wednesday to submit a request to parliament to hold a vote of confidence. The move is considered a procedural step that will ultimately pave the way to new elections following the collapse of the traffic light coalition government last month.

Hollyhedge Consult's Gebhardt said he doubted the next German government's ability to push for more expansionary fiscal policy post-election, referring to speculation over whether lawmakers could seek to reform the country's debt brake, or Schuldenbremse.

"It's very, very hard to actually change it. In the constitution, you need a two-thirds majority, and we don't know what actually happens in the next election. It can be very tight so maybe you don't get this two-thirds majority," Gebhardt told CNBC's "Street Signs Europe" on Wednesday.

"It has to be changed because obviously it hinders infrastructure investments … but probably the new government has to look at their budget and change the budget. So, we are in a different kind of phase where we have to change priorities," he added.

Asked whether this meant the new government should change its priorities rather than its fiscal rules, Gebhardt replied: "Absolutely."

— Sam Meredith

Trump’s White House return is already pushing Europe and the UK closer together

President-elect Donald Trump has not yet re-entered the White House, but the U.K. and neighboring European Union are already working closer together to protect themselves against potential trade and defense confrontations with the incoming U.S. leader.

U.K. Chancellor Rachel Reeves travelled to Brussels on Monday to convene with her EU counterparts in the first such encounter since Britain left the European Union in 2020. Her host, Eurogroup President Paschal Donohoe, said he hoped this would be the first of "many" meetings.

A senior EU diplomat, who also did not want to be named due to the sensitivity of the talks, told CNBC that the bloc could benefit from being closer to the U.K. because of Britain's historical "special relationship" with the United States.

Read the full story here.

— Silvia Amaro

Upside risks for U.S. inflation 'rather moderate' in 2025, Quintet's Antonucci says

Daniele Antonucci, chief investment officer at Quintet Private Bank, said upside risks for U.S. inflation appear to be "rather moderate" over the coming months.

His comments come ahead of highly anticipated U.S. inflation data. The consumer price index reading is seen as likely to influence how the Federal Reserve proceeds on interest rates at its Dec. 17-18 meeting.

"If there is an upside risk to inflation that we might see, that's further down the line," Antonucci told CNBC's "Squawk Box Europe" on Wednesday.

"And that has to do with the Fed, even though there is … consensus that the fiscal stimulus is going to be positive for economic growth, there is maybe less focus on the idea that that could be inflationary on longer horizons," he added.

— Sam Meredith

Sweden's Klarna Bank fined $45.5 million for violating anti-money laundering rules

Sweden's financial regulator on Wednesday fined Klarna Bank 500 million Swedish krona ($45.5 million) for breaking anti-money laundering regulations.

An investigation of the company for the period between April 2021 and March 2022 found Klarna was in violation of several key rules, including a lack of assessments for how the bank's products and services could be used for money laundering or terrorist financing.

Klarna, which is known for its popular buy now, pay later business, said last month that it had confidentially filed initial public offering documents with the U.S. Securities and Exchange Commission.

— Sam Meredith

Adidas shares dip after authorities raid German headquarters

Shares of Adidas traded as much as 1.5% lower on Wednesday after authorities raided the sportswear firm's German headquarters in connection with a years-long tax investigation.

The stock price, which is up nearly 30% year-to-date, was last seen trading off by around 0.5%.

Authorities are investigating customs and tax regulations for products imported into Germany over a roughly five-year period from October 2019 to August this year, a spokesperson said Tuesday.

"The company does not expect any significant financial impact in connection with the investigation," Adidas said in the statement.

— Sam Meredith

Zalando shares drop after About You acquisition announcement

Online retailer Zalando tumbled toward the bottom of the Stoxx 600 index Wednesday, with shares of the Frankfurt-listed firm down around 8% shortly after 8:30 a.m. London time.

The company announced Wednesday that it plans to buy rival retailer About You for 6.50 euros per share, valuing the deal at up to 1.1 billion euros ($1.2 billion).

— Chloe Taylor

TUI shares fall 6%

Shares of Germany-based TUI fell more than 6% on Wednesday after Europe's largest tour operator reported full-year results through to Sept. 30 in line with analyst expectations.

TUI posted earnings before interest and taxes (EBIT) for its financial year of 1.3 billion euros ($1.36 billion), up 33% from 0.98 billion euros from last year. Analysts polled by LSEG had expected annual profit to come in at 1.29 billion euros.

For the next financial year, TUI said, it expects EBIT to increase by 7% to 10%, primarily driven by expectations for summer travel demand, while revenue is anticipated to grow by 5% to 10%.

— Sam Meredith

Europe stocks open lower

European stocks opened slightly lower on Wednesday as market participants awaited the release of U.S. inflation data.

The pan-European Stoxx 600 index traded down 0.2% shortly after the opening bell, with most sectors in negative territory.

— Sam Meredith

Oil prices edge higher

Oil prices were trading slightly higher on Wednesday morning, with energy market participants expecting demand to rise in China, following Beijing's announcement of "moderately" looser monetary policy next year.

International benchmark Brent crude futures with February expiry traded 0.5% higher at $72.55 per barrel at around 7:15 a.m. London time.

U.S. West Texas Intermediate crude futures with January expiry, meanwhile, traded 0.5% higher at $68.94.

— Sam Meredith

Inditex revenues jump as holiday season kicks off

Zara owner Inditex posted interim nine-month earnings on Wednesday, flagging that its revenues between Nov. 1 and to Dec. 9 jumped 9% from the same period of last year, on a constant currency basis.

In the nine months to Oct. 31, sales in constant currency grew 10.5%, while gross profit picked up by 7.2% year-on-year to €16.3 billion ($17.16 billion).

Shares of the Spanish fashion giant, which is set to publish full-year results on March 12, are up almost 40% so far this year.

— Chloe Taylor

Auto giants endured a torrid 2024 — and few expect next year to be much better

A perfect storm of challenges for the European automobile industry shows no sign of letting up, analysts say.

Automakers have struggled to come to terms with a series of headwinds on the road to full electrification, including a lack of affordable models, a slower-than-anticipated rollout of charging points, intense competition from China, tougher carbon regulations and the prospect of targeted U.S. tariffs.

"Automotive stocks are having a hard time globally," analysts at Deutsche Bank said in a research note published Dec. 9.

"Unfortunately, we believe the industry is likely to head into another year of volatility and headwinds across regions. We expect more noise of potential policy implications in the US, further restructuring announcements in Europe, muted demand ex China and pricing to soften," they added.

Read the full story here.

— Sam Meredith

CNBC Pro: What's behind Siemens Energy's 300% rise this year — and what's next?

Spun off from its parent company during the Covid-19 pandemic, Siemens Energy has been on a roller coaster over the past 18 months — from a near-death drop to a dizzying climb of over 310% this year.

Despite these gains, investors and analysts remain bullish on the company's shares rising even further.

CNBC Pro subscribers can read more here.

— Ganesh Rao

European markets: Here are the opening calls

European markets are expected to open in negative territory Wednesday.

The U.K.'s FTSE 100 index is expected to open 33 points lower at 8,244, Germany's DAX down 52 points at 20,295, France's CAC down 14 points at 7,372 and Italy's FTSE MIB down 21 points at 34,524, according to data from IG.

Earnings are set to come from Inditex and OPEC releases its latest monthly oil market report Wednesday.

— Holly Ellyatt