This is CNBC's live blog covering European markets.

LONDON — European markets stumbled on Thursday as an early boost from Nvidia's bumper earnings report and falling bond yields faded through the session.

After three consecutive positive sessions and a strong open, the pan-European Stoxx 600 index closed 0.4% lower. Financial services added 0.5% while tech stocks retreated from a recent rally to fall 2.3%.

The European blue chip index gained Wednesday even as euro zone purchasing managers' index figures came in well below expectations and services activity slid into decline.

Shares in Asia-Pacific rose on Thursday, with Hong Kong's Hang Seng index leading gains as investors reacted to a blockbuster earnings report from U.S. artificial intelligence chipmaker Nvidia.

U.S. stocks were little-changed in early trade.

Investors are also awaiting comments from U.S. Federal Reserve Chairman Jerome Powell on Friday at the conclusion of the central bank's symposium in Jackson Hole, Wyoming, which Wall Street hopes will offer some insight into the likely path of interest rates.

Europe stocks close lower

Europe's Stoxx 600 closed 0.37% lower Thursday as tech stocks dropped 2.3% and August gloom returned after three positive sessions.

The benchmark index has fallen 4.17% in the month to date, according to Eikon data.

The U.K.'s FTSE 100 eked out a 0.2% gain as Germany's DAX fell 0.7% amid renewed concerns about the deterioration of business activity in the euro zone's biggest economy.

— Jenni Reid

Lira boosted by Turkey rate hike

Turkey's currency rallied after the central bank enacted a bigger-than-expected interest rate hike.

The U.S. dollar was 5.3% lower against the Turkish lira in afternoon trade at 25.727 despite broader strength in the greenback Thursday. The Turkish currency also made strong gains against the euro.

The lira has marked several fresh record lows over the last year as its central bank has broken with economic orthodoxy to lower rates amid soaring inflation, before suddenly pivoting to hikes in June.

Thursday's 750 basis point hike takes its main policy rate to 25%.

Stocks on the Istanbul exchange were 0.8% lower, though Turkish banks rocketed 9.23% higher.

— Jenni Reid

U.S. stocks open mixed Thursday

The S&P 500 and the Nasdaq Composite began Thursday's trading session in the green, advancing 0.3% and 0.7%, respectively. The Dow Jones Industrial Average flatlined at the open. 

— Pia Singh

Turkey surprises with bigger-than-expected interest rate hike to 25% in bid to tame inflation

Turkey's central bank on Thursday hiked interest rates by more than expected to 25%, signaling it was willing to follow through on a new commitment to damp inflation through monetary policy.

The main policy rate was previously at 17.5%. Economists polled by Reuters expected a rise to 20%.

In a Thursday statement, the Turkish central bank committee said it "decided to continue the monetary tightening process in order to establish the disinflation course as soon as possible, to anchor inflation expectations, and to control the deterioration in pricing behavior."

Read the full story here.

- Jenni Reid

Biggest movers: ALK-Abello up 8%, JD Sports up 4%, Embracer Group down 4%

ALK-Abello shares were up more than 8% by early afternoon to lead the Stoxx 600 after the Danish allergy treatment company beat second-quarter earnings expectations and almost doubled year-on-year operating profits.

Elsewhere, Britain's JD Sports added 4% while Swedish video game holding company Embracer Group dropped 4.5% to the bottom of the index.

- Elliot Smith

Opening momentum fades in Europe

By early afternoon in London, the pan-European Stoxx 600 index had all but given back opening gains of 0.9%, hovering just 0.1% above the flatline. Financial services added 0.8% while mining stocks fell 0.7%.

We're going back to the 60/40 portfolio in this 'inverse Goldilocks' environment: Goldman Sachs

Christian Mueller-Glissmann, head of asset allocation research at Goldman Sachs, explains why the Wall Street giant is neutral on stocks and bonds.

Nvidia earnings recap: The numbers, China and new products

CNBC takes a look at the Nvidia numbers that boosted global stocks on Thursday.

Biggest movers: ALK-Abello up 11%, Ambu up 4%

ALK-Abello shares soared more than 11% in early trade to lead the Stoxx 600 after the Danish allergy treatment company beat second-quarter earnings expectations and almost doubled year-on-year operating profits.

Danish health care company Ambu also added more than 4%.

- Elliot Smith

European shares open higher

The pan-European Stoxx 600 index was up 0.9% in early trade, with tech stocks climbing 1.9% to lead gains as all sectors and major bourses opened in positive territory.

Here are the opening calls

Britain's FTSE 100 is set to open around 38 points higher at 7,359, Germany's DAX is seen up around 83 points to 15,811 and France's CAC 40 is expected to add around 49 points to 7,296, according to IG data.

CNBC Pro: JPMorgan says AI's 'democratization' could put these 2 U.S.-listed Asian stocks at risk

JPMorgan warned that rapid growth in artificial intelligence is no guarantee of sustained earnings expansion — and could leave many companies at risk.

The Wall Street bank said that the rise in companies using generative AI, the technology made popular by OpenAI's ChatGPT, will boost productivity and deepen customer engagement.

But it cautioned that if the underlying AI technology is similar, the expansion of generative AI use could erode product differentiation and pricing power among currently competitive companies. It also noted that some companies are already anticipating deflationary pricing pressure.

It named two stocks that are particularly at risk. CNBC Pro subscribers can read more here.

— Ganesh Rao

CNBC Pro: ‘Dividend aristocrat’: Investors are getting more bullish on this sector, naming stocks to buy

Stocks in the sector are an option for investors seeking inflation protection, says one strategist, who names one with "plenty of room to grow."

He says it's "a far superior alternative" to Treasury Inflation-Protected Securities.

Fund managers and other investors name stocks to buy.

CNBC Pro subscribers can read more here.

— Weizhen Tan