This is CNBC's live blog covering European markets. See the latest updates below.

European stock markets closed lower on Wednesday, with the Stoxx 600 recording its worst session since mid-April.

The benchmark Stoxx 600 provisionally ended over 1% lower, with all sectors and major bourses in negative territory. Mining stocks led the losses, down 2.12%.

Mining giant Anglo American was down 3.89% after BHP Group said it did not intend to make a firm acquisition offer ahead of a 5 p.m. deadline for talks.

International Distribution Services, owner of Britain's Royal Mail, rose 4.36% after accepting a 3.57 billion pound ($4.56 billion) takeover offer from Czech billionaire Daniel Kretinsky.

The Stoxx had also dropped on Tuesday, closing 0.6% lower, as investors focus on the interest rate outlook and monitor rising global bond yields.

A solid crop of first-quarter and full-year earnings has put the index on course for a monthly gain.

"Earnings season was generally better than feared," Marcus Morris-Eyton, portfolio manager for Europe and global growth at AllianceBernstein, told CNBC's "Squawk Box Europe" on Tuesday.

"51% of companies beat expectations, but actually two thirds of companies beat or met expectations, and when you dig beneath the surface what is particularly interesting is the margin strength across European companies during the quarter," Morris-Eyton said.

"What that's indicative of is that companies are so far managing to hold on to many of the price increases they pushed through during that Covid period, so as inflationary pressures are reducing, companies are holding on to those pricing gains that are benefiting the margin line," he added.

However, as the flow of earnings has dried up, attention has shifted back to the plans of the world's major central banks as they express caution over the inflationary outlook.

Minneapolis Federal Reserve President Neel Kashkari told CNBC on Tuesday it would take "many more months of positive inflation data" to give him confidence it is time to cut rates.

European Central Bank Governing Council member Klaas Knot meanwhile said in a London speech that it will "soon" be appropriate to move toward less restrictive monetary policy, but that easing must go "slowly" and "gradually" from there.

Inflation data is due from both the euro zone and U.S. on Friday.

Asia-Pacific markets were mostly lower on Wednesday, while U.S. stocks also retreated.

European markets close lower

European markets closed over 1% lower on Wednesday, with the pan-European Euro Stoxx 600 recording its worst session since April 16.

All sectors ended the day in the red, with mining stocks notching the biggest decline of 2.12%.

All major bourses across Europe also declined, with the U.K.'s FTSE 100 last being down 0.86%, Germany's DAX falling 1.09% and France's CAC 40 shedding 1.52%.

— Sophie Kiderlin

Anglo American to create 'a lot of additional value' from restructuring, analyst says

Anglo American is likely to create "a lot of additional value" from its restructuring, said John Meyer, partner at SP Angel.

Meyer noted that higher copper prices are on the way and that the rise in prices is why BHP Group is keen to buy Anglo American.

The British miner is "cheap" and that's why BHP Group wants to buy the rival firm, he said.

Read the full story here.

— April Roach

German inflation rises 2.8% on annual basis in May

Germany's consumer price index rose 2.8% on an annual basis in May, according to provisional, harmonized data released by the national statistics office on Wednesday.

In April, this print had come in at 2.4%.

On a monthly basis, the harmonized CPI increased 0.2% on the previous month in May.

Food prices rose at a far lower rate than headline CPI, the statistics office said, adding that energy prices were lower in May 2024 on an annual basis, while cost of services jumped sharply compared to a year earlier.

The yield on the German 10-year Bund on Wednesday rose to levels last seen in late April, and was last at 2.641% after climbing by over five basis points.

— Sophie Kiderlin

European consumer confidence mixed

Consumer confidence in Germany and Italy ticked higher in May, while French sentiment was flat and Portugal's declined, a range of surveys showed.

Market research firm GfK said German households' assessment of the economic outlook increased significantly and the overall consumer climate improved for a fourth straight reading, though people were only slightly less willing to spend.

France's national statistics agency Insee found household confidence was "stable," as Italy's Istat said its consumer confidence index rose "thanks to a rise in all its components," particularly economic confidence.

Portuguese households were also more optimistic on the economy in May, but overall consumer confidence fell after hitting the highest level since February 2022 in April, Statistics Portugal said.

— Jenni Reid

Anglo American trims losses after rejecting BHP takeover talks extension

Shares of Anglo American were down 0.84% at 10:59 a.m. in London, trimming earlier losses after the British miner rejected a request from BHP Group to extend takeover talks.

The rival miners have until 5 p.m. London time Wednesday to reach a decision on BHP's latest offer for Anglo, following a week-long extension of last week's deadline.

BHP had requested a further prolongment of talks earlier on Wednesday, saying it "believes a further extension of the Deadline is required to allow for further engagement on its proposal." 

Anglo said BHP's latest offer for its business failed to address the board's "fundamental concerns relating to the disproportionate execution risk" surrounding the deal, and that an extension beyond Wednesday's deadline would not be granted.

Read more here.

— Karen Gilchrist, Jenni Reid

Saab down 6% after Sweden pauses Gripen jet deliveries to Ukraine

Swedish aerospace and defense firm Saab was 5.6% lower in mid-morning deals, after Sweden's defense minister said the country was pausing plans to send Saab-made Gripen fighter jets to Ukraine.

Ukraine's military backers want instead to focus on introducing U.S.-made F-16 aircraft, Pal Jonson told news agency TT.

— Jenni Reid

Europe stocks open lower

European stocks opened lower on Wednesday, with the Stoxx 600 index 0.2% lower at 8:22 a.m. in London.

France's CAC 40 index fell 0.35%, Germany's DAX dipped 0.2%, and the U.K.'s FTSE 100 was just below the flatline.

— Jenni Reid

BHP Group requests extension to $49 billion Anglo American takeover talks

BHP Group on Wednesday said it believes an extension to talks with takeover target Anglo American is necessary, as the deadline for discussions looms later in the session.

The Australian miner said in a statement that it had proposed a number of "socioeconomic measures" to address concerns over its bid, but added that more time was needed to discussions.

The offer values the company at £38.6 billion ($49.2 billion), according to previous Reuters calculations.

Read more here.

— Karen Gilchrist

CNBC Pro: Can Nvidia's astronomical growth last? Outperforming long-time growth investor weighs in

For many investors, the million-dollar question is how far Nvidia can go or whether it can sustain its dramatic growth.

Nick Griffin, chief investment officer at Munro Partners, has invested in Nvidia since 2019 – but even he is taken aback by the stock's astronomical run so far.

"I have never seen anything like this in terms of the dramatic earnings acceleration it's displaying … it's never happened before to a company of this size, and it's unprecedented," he said Tuesday.

CNBC Pro subscribers can read more here.

— Weizhen Tan

CNBC Pro: Morgan Stanley names global stocks to ride the Nvidia boom — and gives 4 over 50% upside

Investor darling Nvidia is dominating headlines once again after its earnings last week surpassed expectations on the back of the artificial intelligence boom.

Morgan Stanley notes that the reaction to Nvidia's first quarter results is "very telling on how much buying power still exists in the market."

"We are far from topping out on AI. This should be enough to sustain investor confidence in AI supply chain stocks in Asia," the investment bank's analysts wrote in a May 22 research note.

They named a number of overweight-rated stocks to play their favorite AI themes, including four with over 50% upside potential.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

Europe stocks head for lower open

European stock markets are set to open lower on Wednesday, according to IG data.

The U.K.'s FTSE 100 was seen opening lower by 37.3 points at 8,225, France's CAC 40 lower by 35 points at 8,019, and Germany's DAX lower by 73 points at 18,614.

— Jenni Reid

'Many more months' of positive data needed before rate cuts, Fed's Kashkari says

Minneapolis Federal Reserve President Neel Kashkari told CNBC on Tuesday he is still not ready to cut interest rates.

"Many more months of positive inflation data, I think, to give me confidence that it's appropriate to dial back," he said. He also noted the central bank could raise rates if inflation does not continue to ease. "I don't think we should rule anything out at this point."

— Fred Imbert

ECB's Knot says monetary policy to ease 'soon' — but slowly

European Central Bank Governing Council member Klaas Knot said Tuesday it will "soon" be appropriate to move toward less restrictive monetary policy, but that easing must go "slowly" and "gradually" from there.

Knot, head of the central bank of the Netherlands, said during a speech in London that he has "increasing confidence inflation will return to target in a timely manner."

"Rates will slowly but gradually move into less restrictive levels," he said.

Markets are betting on a June interest rate cut from the ECB following firm signaling from policymakers, with just one further cut this year.

"The precise timing, speed and scale of easing will have to follow a data-dependent approach, with our projections and the labor market being a key ingredient," Knot said.

Recent data suggests wage growth will remain "bumpy" this year, Knot added, meaning the next round of ECB projections on growth and inflation in June will be crucial for determining the path ahead.

— Jenni Reid

Nasdaq eclipses 17,000 for first time

The Nasdaq Composite touched a new record in Tuesday's session. At one point, the tech-heavy index surpassed the 17,000 mark for the first time ever.

It comes near the end of a strong month, with the index rising more than 8% so far in May.

— Alex Harring