European stocks close lower after ECB holds rates steady; Aviva down 6%

European markets on Thursday provisionally closed 0.4% lower, with most sectors and major bourses in negative territory.

Banks and telecoms stocks led the losses, down 2.4% and 2.1%, respectively.

— Sam Meredith

U.S. stocks opened slightly higher as Wall Street continued to digest Wednesday's hotter than expected inflation print.

The tech-heavy Nasdaq rose 0.4% while the S&P 500 gained 0.1%. The Dow Jones Industrial Average dipped 0.1%.

Shares of British insurance firm Aviva fell 6% after announcing new plans to "rebuild and rebrand" its financial lines business.

Meanwhile, AstraZeneca rose 3% on a pledge to increase its dividend this year ahead of a key vote on its chief executive's pay.

— Karen Gilchrist

The European Central Bank held interest rates steady for the fifth straight meeting on Thursday, but firmed up its wording on a potential future cut.

"If the Governing Council's updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission were to further increase its confidence that inflation is converging to the target in a sustained manner, it would be appropriate to reduce the current level of monetary policy restriction," it said in a statement.

Market pricing currently suggests a 25-basis-point cut in June, according to LSEG data.

— Karen Gilchrist

The European Central Bank is widely expected to announce a hold in interest rates Thursday afternoon, while paving the way for a potential cut in June.

ECB President Christine Lagarde gave hints during the March meeting that a move to lower in rates in June was a firm possibility. Since then, euro zone inflation has fallen more than expected, hitting 2.4% in March.

"Policymakers will remain highly sensitive to the incoming data, but in our view look set to start the rate-cutting cycle in June. As the year progresses we expect quarter-point reductions at the remaining meetings, which should put the deposit rate at 2.75% at year-end," Henk Potts, market strategist at Barclays Private Bank, said in a note.

The decision will be released at 2:15 p.m. Frankfurt time before a press conference by Lagarde.

— Jenni Reid

UBS shares slipped 1.2% Thursday morning after the Swiss government proposed 22 measures aimed at tightening its policing of banks deemed "too big to fail."

It comes a year after authorities brokered the emergency rescue of stricken rival Credit Suisse by UBS, creating the biggest merger of two systemically important banks since the global financial crisis.

The regulations may limit UBS' potential to challenge Wall Street giants, Beat Wittmann, partner at Zurich-based Porta Advisors, told CNBC's "Squawk Box Europe."

Wittmann said it "creates a lose-lose situation for Switzerland as a financial center and for UBS not to be able to develop its potential."

"It comes down to the regulatory level playing field. It's about competencies of course and then about the incentives and the regulatory framework, and the regulatory framework like capital requirements is a global level exercise," he added.

Read more here.

— Elliot Smith, Jenni Reid

Shares of British cybersecurity firm Darktrace were 7% higher at 9:45 a.m. in London after a third quarter trading update flagged year-on-year revenue growth of 26.5% to $176.1 million.

The company, a prized technology player for the London Stock Exchange, also said it expected its adjusted earnings margin to be above previous guidance of 21% and raised its full-year revenue growth forecast by 0.5 percentage points.

Ben Barringer, technology analyst at Quilter Cheviot, said the results showed "consistent strong growth and another beat and raise," and indicated Darktrace "continues to be undervalued versus its US peers."

Improvement in net annualized recurring revenue was a highlight, he added.

— Jenni Reid

Societe Generale topped Stoxx 600 gains in morning trade, up 4% to its highest level since September 2023.

The French bank announced Thursday it agreed to sell its equipment financing businesses to Groupe BPCE for 1.1 billion euros ($1.182 billion), providing an anticipated 25 basis point improvement to its CET1 ratio, a measurement of capital against assets.

The deal is expected to be completed in the first quarter of 2025, it said.

The businesses had outstanding loans of around 15 billion euros at the end of December 2023.

Societe Generale said the deal was progress toward its goal of creating a more "streamlined, more synergetic and efficient business model," while strengthening its capital base.

— Jenni Reid

European markets were mixed early Thursday, with France's CAC 40 and the U.K.'s FTSE 100 both around 0.1% higher and Germany's DAX flat.

The Stoxx 600 index was also near the flatline.

— Jenni Reid

The U.S. Federal Reserve is likely to cut interest rates before the European Central Bank does, a former member of the Bank of England said, defying current market expectations.

"I suspect that the Fed will be the first to really put a cut in," DeAnne Julius, a founding member of the Monetary Policy Committee of the Bank of England, told CNBC on Tuesday.

Julius explained her forecast was based on the Fed's dual mandate, which looks at both inflation and employment in the U.S. economy. The latest job figures pointed to a buoyant U.S. labor market, and inflation has also dropped though it is still above the Fed's 2% target.

Read the full story here.

— Silvia Amaro

Citi has identified a digital advertising and marketing services company as a high-risk but potentially attractive investment opportunity.

The investment bank's analysts highlighted that, while the short-term outlook remains cloudy, "there is potentially still a lot to stay excited about medium term."

The Wall Street bank expects the 'attractive' yet 'high risk' stock could go up by 280% over the next 12 months.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Attractive returns and the breadth of opportunities have historically been among the many reasons why the U.S. has reigned supreme among investors.

While the global superpower still has "some areas that look good" in terms of value, investment analyst Steven Glass at Pella Funds Management has his sights on opportunities in other geographies.

"There are still areas that look good value, but generally, it's outside of the U.S.," Glass, who is managing director at the investment house said, naming markets - and stocks - he is betting on right now.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

European markets are expected to open higher Thursday.

The U.K.'s FTSE 100 index is expected to open 22 points higher at 8,442, Germany's DAX up 26 points at 18,896, France's CAC 7 points higher at 8,244 and Italy's FTSE MIB up 64 points at 35,091, according to data from IG.

Earnings are due from Swiss Re, Zurich Insurance, Siemens, Deutsche Telekom, BT and EasyJet, among others. There are no major data releases.

— Holly Ellyatt