European markets close higher after British PM Liz Truss resigns

European markets reversed early losses to end the day 0.25% higher, on a day which saw political turbulence in the U.K. culminating in the prime minister's resignation.

The U.K.'s FTSE 100 closed 0.27% higher and the pound gained around 0.7% against the dollar.

France's CAC 40 closed up 0.7% and Germany's DAX index rose 0.2%.

Dutch firm Be Semiconductor led stock gains, rising 15% despite warning of an industry downturn. Meanwhile Ericsson and Nokia slipped 14% and 7.5%, respectively, after both missing analyst profit forecasts.

— Jenni Reid

Dutch semiconductor firm Besi was the top gainer among European stocks, rising 13% despite reporting lower net income for the first nine months of the year and warning of a "new industry downturn."

At the other end of the index, Swedish telecoms company Ericsson fell 15% after reporting lower earnings and missing analyst forecasts. Nokia dropped 7% after it also failed to hit profit forecasts.

— Jenni Reid

Sterling is up 0.5% to trade at around $1.1214 early afternoon following the resignation of Liz Truss as U.K. Prime Minister. Government bonds also reacted positively to the news, with 10-year gilt yields falling four basis points to 3.842%.

— Hannah Ward-Glenton

Liz Truss announced she is resigning as British Prime Minister as she was elected "with a mandate for change" but was not able to "deliver that mandate."

Read the full story here.

— Hannah Ward-Glenton

Sterling is up 0.7% against the dollar as the U.K. awaits a statement from Prime Minister Liz Truss.

This follows political chaos in the U.K. and reports from Sky News that she may be about to resign.

— Hannah Ward-Glenton

The Bank of England's Deputy Governor Ben Broadbent told investors that betting on big increases in interest rates would deliver a "pretty material" hit to the economy.

Broadbent said it's unclear how the British government's new energy price cap plan will affect inflationary pressure in the medium term, after new Finance Minister Jeremy Hunt scaled back the original plans.

— Hannah Ward-Glenton

Germany's Federal Statistical Office said Thursday morning that producer prices in the country rose by an annual 45.8% in September.

Economists had been expecting a figure of 44.7%, according to Reuters. This adds to concerns that wider inflation figures will keep rising over the coming months.

—Matt Clinch

Shares of Ericsson dropped 12% following third quarter earnings, while Nokia is down 5% in early trade.

Both companies' operating margins suffered from rising costs and contract delays.

— Hannah Ward-Glenton

European markets are heading for a positive open Tuesday.

The U.K.'s FTSE 100 index is expected to open 18 points higher at 7,498, Germany's DAX 41 points higher at 15,177, France's CAC up 24 points at 7,104 and Italy's FTSE MIB 85 points higher at 25,822, according to data from IG.

On Tuesday, earnings are set to come from MAN Group and data releases will include French business climate data and Italian consumer confidence figures.

— Holly Ellyatt

Semiconductor stocks have been beaten down this year, but investors with a longer-term view on the importance of chips to secular trends such as 5G, electrification and artificial intelligence could look to buy the dip.

Hedge fund manager David Neuhauser shares one chip stock he likes.

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— Zavier Ong

Sterling extended its losses against the dollar as U.K. Prime Minister Liz Truss addressed fellow lawmakers for the first time since her new Finance Minister, Jeremy Hunt, scrapped most of the policies in her latest fiscal package.

The pound was down 0.8% to trade at $1.12290 during Truss' speech.

— Hannah Ward-Glenton

The last couple of weeks have put a "competence risk premium" into the financial markets, Paul Donovan, chief economist at UBS Wealth Management, said on CNBC's "Squawk Box Europe."

"Financial markets have judged the U.K. government to not be as competent as it could've been," Donovan said.

He also said that U.K. inflation rising to 10.1% "should not be disappointing."

— Hannah Ward-Glenton

Recession fears are roiling markets, but the typical playbook of taking cover in sovereign bonds is "obsolete," says BlackRock.

"In this environment, bond vigilantes are back and heralding term premium's return," BlackRock said, adding that it's underweight on government bonds.

The asset manager says that investors can still buy other types of bonds, however.

CNBC Pro subscribers can read more here.

— Weizhen Tan