European markets close higher, trimming losses as euro zone inflation eases to 8.5%

S&P 500 futures slid Thursday, as traders fretted over a continued rise in interest rates.

Futures tied to the S&P 500 fell 0.5%, while Nasdaq-100 futures dropped 0.8%. Dow Jones Industrial Average futures bucked the trend, eking out a small gain as Salesforce shares popped on a strong quarter and forward guidance.

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Inflation in the euro zone eased slightly in the month of February, following comments from the European Central Bank chief that bringing the rate down will take some time.

Headline inflation across the 20-member bloc came in at 8.5% in February, according to preliminary data released Thursday. By comparison, prices seemed to have cooled off for a third consecutive month in January, with headline inflation at a revised 8.6%.

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— Silvia Amaro

Danish medical devices firm Ambu was the top riser among European stocks in morning trade, gaining 6.3%.

Analysts at DNB Markets upgraded the stock from neutral to buy on Wednesday, according to a MarketWire report.

Beazley, a U.K.-based insurance group, fell 7.6% as its full-year results showed profits slid from $369.2 million to $191 million, in part due to investment losses.

— Jenni Reid

Brian McNamara, CEO of the health-care company, discusses earnings and the outlook for 2023.

Europe's Stoxx 600 index dropped 0.62% in early trade as investors braced themselves for the release of euro zone inflation data at 10:00 a.m. London time.

It follows inflation figures from France, Spain and Germany all coming in hotter than expected for February and showing increases on the previous month.

Germany's DAX was down 0.8%, France's CAC 40 down 0.7% and the U.K.'s FTSE 100 down 0.25%.

— Jenni Reid

The surge in Treasury yields is taking markets by storm, and investors are now looking to bonds for yield — particularly short-term ones.

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Andrew Sheets, chief cross-asset strategist at Morgan Stanley, discusses recent economic data out of the U.K., Europe and the U.S., and the potential risks to stock markets.

The 60/40 model, in which investors put 60% of their money in stocks and 40% in bonds, was once the linchpin of a typical investment portfolio. Morgan Stanley's Jim Caron tells CNBC if he's still convinced now that rates are higher for longer.

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— Zavier Ong

German inflation is expected to have risen to 8.7% in February, according to the German Federal Statistics Office.

The rate would sit 0.8% higher than in January, according to the preliminary data.

February's EU-harmonized rate for consumer prices increased to 9.3% year-on-year, above the 9% forecast by economists polled by Reuters. Harmonized inflation was at 9.2% in January.

The rate remains well above the European Central Bank's 2% target and follows the hotter-than-expected February inflation figures from France and Spain.

"It seems to be the case that inflation is very stubborn, so it looks like that inflation will remain on a very high level," Joachim Nagel, President of Deutsche Bundesbank told CNBC's Annette Weisbach Wednesday.

The pan-European Stoxx 600 index eased slightly on the announcement, but was flat by 1.30 p.m. London time.

— Hannah Ward-Glenton

European markets are expected to open mixed Thursday.

The U.K.'s FTSE 100 index is expected to open 7 points higher at 7,624, Germany's DAX 33 points lower at 15,929, France's CAC 14 points lower at 7,194 and Italy's FTSE MIB 22 points lower at 27,025, according to data from IG.

Data releases Thursday include euro zone unemployment figures for the first quarter and revised gross domestic product data for the same period. There are no major earnings releases today.

— Holly Ellyatt