European stocks log worst quarter in a year with a drop of 2.9%

This is CNBC's live blog covering European markets.

European stocks were higher Friday, but optimism in recent sessions rounded off a weak month and the worst quarter for a year.

The pan-European Stoxx 600 provisionally closed up 0.5% on the prior session, with most sectors finishing in positive territory as tech and household goods led the pack.

The index ended Wednesday at a six-month low and has declined 2.1% this month, according to LSEG data, following a 2.8% fall in August. Despite making gains in July, that still takes the benchmark Stoxx to a 2.9% loss for the quarter, its worst performance for a year.

European markets

Investors on Friday analyzed euro zone inflation, which fell to its lowest level since October 2021. It tumbled to 4.3% for the month of September, according to flash data.

The announcement is in line with recent country-specific data, with preliminary inflation figures from Germany showing inflation slowed more than expected Thursday. Harmonized data for Europe's biggest economy showed a 4.3% increase in consumer prices since September 2022 — the lowest level since Russia's full-scale invasion of Ukraine.

Asia-Pacific markets largely climbed in the final trading day of the week, with Hong Kong's Hang Seng index leading gains in the region and rising over 2%.

U.S. stocks rose early Friday as investors prepared to end a difficult September.

Europe stocks close higher but round off negative quarter

Europe's Stoxx 600 index closed 0.4% higher Friday, pulling further away from a six-month low hit on Wednesday.

Gains to end the week were tentative as the prospect of higher for longer interest rates continued to weigh, along with a weak economic outlook. The FTSE 100 was up 0.08% as France's CAC 40 and Germany's DAX gained 0.26% and 0.4%, respectively.

The Stoxx 600 notched losses of 2.1% this month, according to LSEG data, and dropped 2.9% this quarter, its worst performance for a year.

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Stoxx 600

— Jenni Reid

Sportswear brands boosted by Nike results

A shopper leaves a Nike store along the Magnificent Mile shopping district with a purchase in Chicago, Dec. 21, 2022.
Scott Olson | Getty Images

European sportswear brands benefited late Friday from a first-quarter earnings beat by Nike.

Adidas shares were 6.3% higher at 4 p.m. London time, as Puma gained 6.2%. Retailer JD Sports was also higher, by 5.3%.

— Jenni Reid

U.S. stocks open higher

The three major indexes opened Friday's session higher as the market looked to make up some ground in the 11th hour of a tough month and quarter.

The Dow rose about 0.5% shortly after 9:30 a.m. ET. The S&P 500 climbed 0.7%, while the Nasdaq Composite added nearly 1%.

— Alex Harring

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Euro zone inflation falls to lowest level since October 2021

Euro zone inflation fell to 4.3% in September, its lowest level since 2021, flash figures showed Friday. It marked a drop from 5.2% the previous month.

In a reading likely to be seen as encouraging for the European Central Bank, core inflation — which strips out volatile food and energy prices — came in at 4.5%, its lowest rate for a year. The ECB hiked interest rates to a record level this month, but economists and investors expect them to have now reached their peak.

The euro maintained gains against the U.S. dollar following the release, and was trading 0.5% higher at $1.061, pulling away from an eight-month low Tuesday. The euro was choppy against the British pound.

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Euro/dollar exchange rate.

— Jenni Reid

Stocks on the move: Commerzbank 7% higher, Oci up 6%

Shares of Commerzbank were up 7%, after the bank updated its capital returns policy. Commerzbank plans to return 3 billion euros ($3.2 billion) to shareholders as dividends and share buybacks, it said in an announcement, with a payout ratio of at least 70% for 2024.

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Commerzbank share price.

Shares of chemicals producer OCI rose 6% after Jeffries upgraded the stock from "buy" to "hold."

— Hannah Ward-Glenton

European markets open higher

European markets opened higher on Friday, after ending a five-day losing streak in the previous session.

The pan-European Stoxx 600 index was up by 0.4%, with most sectors trading in positive territory. Household goods were 1.3% higher, followed by tech stocks, which were up 1.2%. Oil and gas bucked the trend with a 0.3% downturn.

— Hannah Ward-Glenton

European markets: Here are the opening calls

European markets are set to open mixed, according to IG data.

Britain's FTSE 100 looks to gain 6.7 points to 7,609, while Germany's DAX will be up 40 points to 15,349. France's CAC is forecast to move 5.6 points higher to 7119, and Italy's FTSE MIB will drop 4.5 points to 28,188.

— Hannah Ward-Glenton

CNBC Pro: BofA reveals the global stocks that tend to outperform when the U.S. dollar rises

The U.S. dollar has been on a tear following the Federal Reserve's apparent commitment to higher-for-longer interest rates.

While economies and stock markets around the globe are likely to come under pressure in such a scenario, a raft of European stocks could actually gain from the rising U.S. dollar, according to the Bank of America.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

CNBC Pro: Expecting a recession? Here’s how investors can gain 40% with a simple bond trade

As interest rates peak, investment advisors now see opportunities for hefty gains through certain government bonds.

A combination of macroeconomic factors alongside tax-free advantages is expected to boost returns for investors.

CNBC Pro subscribers can read more here.

— Ganesh Rao