This was CNBC's live blog covering European markets.

European markets closed lower Wednesday after regional economic sentiment dropped in December, according to preliminary data.

The pan-European Stoxx 600 index ended the session down 0.27%, having traded higher for most of the morning session.

Most major bourses and the majority of sectors also closed the day in negative territory, with healthcare, financial services and media stocks among the few in the green.

The downturn came after the European Commission released preliminary data showing its economic sentiment indicator had dropped 1.7 points in the EU and 1.9 points in the euro area in December, with both scores remaining below their long-term averages. Earlier, separate data out of Germany showed an unexpected fall in industrial orders in November.

Consumer confidence in both the EU and the euro area also decreased, marking the second consecutive monthly decline in European consumer sentiment.

Shares of Shell closed down 1.68% after the British energy giant trimmed its liquefied natural gas (LNG) production outlook for the fourth quarter of 2024 and warned trading results for its chemicals and oil products division were expected to be "significantly lower" compared to the third quarter.

Vestas Wind Systems, Oersted and Siemens Energy led a wider downturn in energy stocks, with all three shedding more than 5% each.

Meanwhile, shares of Danish pharmaceuticals giant Novo Nordisk closed up 2.8% after UBS upgraded the stock to buy, arguing that a recent sell-off around its experimental new CagriSema obesity drug was "overdone."

Asia-Pacific markets traded mixed Wednesday, following Wall Street declines after Treasury yields rose and major U.S. tech stocks declined.

U.S. stocks extended their slide in opening deals Wednesday, before rebounding in morning trade.

European markets close lower

European markets closed lower Wednesday, after regional economic sentiment dropped in December and investors awaited minutes from the Fed's December meeting.

The pan-European Stoxx 600 index provisionally ended down 0.27%, with most sectors and major bourses in the red.

Germany's DAX closed down 0.12% and France's CAC lower by 0.49%. Italy's FTSE MIB, meanwhile, ended up 0.49% and the U.K.'s FTSE 100 closed flat.

— Karen Gilchrist

Stocks on the move: Novo Nordisk up 3%, Canal+ down 5%

Shares of Danish pharmaceutical giant Novo Nordisk rose 3% after UBS upgraded its stock rating to buy, arguing that a recent sell-off around its experimental new CagriSema obesity drug was "overdone."

On the other end, shares of French broadcaster Canal+ were down 4.8% as the stock has struggled to gain a footing following its listing on the London Stock Exchange last month.

— Karen Gilchrist

U.S. stocks dip at the open

U.S. stocks edged lower in opening trade Wednesday, as tech stocks struggled to recover from Tuesday's sell-off and investors awaited minutes from the Fed's December meeting.

The Dow Jones Industrial Average was down 0.25% while the S&P 500 slipped 0.07%. The Nasdaq Composite, meanwhile, was flat.

— Karen Gilchrist

Economic sentiment declines in the EU

European economic sentiment dropped in December, according to a flash estimate from the European Commission.

In a Wednesday update, the institution said its economic sentiment indicator — a confidence score derived from business and consumer surveys — dropped 1.7 points in the EU and 1.9 points in the euro area, with both scores remaining below their long-term averages.

Consumer confidence in both the EU and the euro area also decreased, marking the second consecutive monthly decline in European consumer sentiment.

— Chloe Taylor

Euro zone households likely to keep saving to rebuild wealth, ECB says

Euro zone households could keep saving a large portion of their income to rebuild wealth lost to high inflation, the European Central Bank argued, suggesting lackluster consumption will continue to weigh on growth in the near term.

European families are sitting on an ever-growing pile of savings, confounding hopes that consumer largesse will kickstart the region's stagnant economy.

"The saving rate is expected to remain high in the near term, albeit somewhat lower than its most recent peak, partly reflecting the moderating interest rates," the ECB said in an Economic Bulletin article published on Wednesday.

Euro zone households saved 15.7% of their disposable income in the second quarter of last year, the most recent period for which data is available, well above levels around 12% to 13% before the pandemic. This has been weighing on consumption and kept overall economic growth hovering just above zero for just over a year, despite the ECB repeatedly predicting a consumption-led recovery.

The main culprit is the 2021/2022 inflation surge which eroded the real wealth of households, the bank said.

— Reuters

German industrial data hint at some stabilization, economist says

German industrial data released earlier Wednesday showed new industrial orders fell unexpectedly in November, down 5.4% on the previous month.

New orders excluding large-scale ones were nevertheless 0.2% higher than in the previous month, German data office Destatis said. Analysts polled by Reuters had expected no change in the monthly figure.

Greg Fuzesi, euro area economist at JPMorgan, said in a note that the data hint at some stabilization in German industry, nonetheless.

"Today’s German industry data hint at some stabilisation, although the ongoing weakness in the business surveys still warrants caution about the near-term outlook," Fuzesi said in an analysis note.

"German orders fell 5.4%m/m in November, entirely due to bulk orders, which had been on a very strong run recently. On an ex-bulk basis, they nudged up 0.2%m/m and are up 3.2% annualised so far in 4Q24. In fact, ex bulk orders continue to look stable over recent months, despite the ongoing weakness on the new orders index in the German manufacturing PMI [purchasing manager's index."

"Hence, the hard data are currently looking somewhat better than the surveys. By region, it is encouraging to note that domestic non-bulk orders moved higher in November, having underperformed significantly in recent months. But, it is too early to say that the downward trend in domestic orders has ended," he said.

— Holly Ellyatt

German industrial orders fell unexpectedly in November

German industrial orders fell unexpectedly in November, data released Wednesday showed, reflecting more gloom in Europe's largest economy.

Industrial orders were down 5.4% in November, compared to the previous month, according to data released by Germany's Federal Statistical Office (Destatis).

New orders excluding large-scale ones were nevertheless 0.2% higher than in the previous month, the office said. Analysts polled by Reuters had expected no change in the monthly figure.

The negative month-on-month development of new orders in manufacturing in November was primarily down to "sizeable large-scale orders for other transport equipment (aircraft, ships, trains, military vehicles) which were received in October 2024," Destatis said.

"This high volume of large-scale orders was not repeated in November," it added.

"Therefore, new orders in this sector in November 2024 were 58.4% lower than in the previous month, on a seasonally and calendar adjusted basis."

— Holly Ellyatt

Shell lowers LNG production forecast in fourth-quarter trading update

British energy giant Shell on Wednesday trimmed its liquefied natural gas (LNG) production outlook for the fourth quarter of 2024 and warned trading results for its chemicals and oil products division were expected to be "significantly lower" compared to the third quarter.

In a trading update, Shell cut its LNG production forecast for the final three months of last year to 6.8 to 7.2 million metric tons, down from a previous forecast of between 6.9 to 7.5 million metric tons.

The firm said trading results for its chemicals and oil products division were expected to be significantly lower than in the third quarter, "reflecting seasonality."

Shell said it expects non-cash post-tax impairments of $1.5 billion to $3 billion in the fourth quarter and a $1.3 billion charge due to the timing of payments for emissions certificates. The latter charge relates to permits in Germany and the U.S.

The company is poised to report fourth-quarter earnings on Jan. 30. Shell's London-listed shares are up more than 5% year-to-date.

"I think, overall, from the update that we heard today from Shell that it reinforces the message that we've already heard from [Shell CEO] Wael Sawan, which is one of caution," Andrew Critchlow, head of EMEA news at S&P Global Platts, told CNBC's "Squawk Box Europe" on Wednesday.

"It was a pretty tepid year for oil markets last year and that has a knock-on effect on all the oil majors," Critchlow said.

— Sam Meredith

CNBC Pro: These 4 ETFs have outperformed the S&P 500 over the past five years

Four ETFs in Europe and North America have beaten the S&P 500 over the past five consecutive years, according to a CNBC Pro screen.

The U.S. benchmark rose by 23.3% in 2024 and 24.2% the previous year, making it particularly challenging for funds to outperform. It's only the third time the S&P 500 has logged back-to-back gains of that size in the past century, according to Deutsche Bank.

CNBC Pro screened over 10,600 ETFs listed in Europe and North America to identify the four ETFs.

CNBC Pro subscribers can read more here.

— Ganesh Rao

UBS says the 'bull market remains intact' this year

Despite expensive valuations, UBS continues to view U.S. equities and artificial intelligence-exposed parts of the market as attractive.

The firm predicts earnings growth to drive another year of "concentrated returns," continuing 2024's 'Mag 7' leadership.

"U.S. equity valuations are higher than average, but historically valuations have had very little correlation with returns over the next 12 months. Instead, profit growth matters more," David Lefkowitz, CIO head of US equities for UBS, wrote in a Monday note to clients. "We think the bull market remains intact driven by solid economic and corporate profit growth."

Lefkowitz expects "healthy" S&P 500 earnings per share growth of 9% this year, remaining bullish on stocks overall even as the firm expects periods of volatility in the year ahead.

— Pia Singh

CNBC Pro: Goldman loves this European stock riding the data center wave

Goldman Sachs is bullish on one of Italy's cable manufacturing giants.

And the stock is among the latest additions to the investment bank's "Conviction List - Directors' Cut" for Europe.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

European markets: Here are the opening calls

European markets are expected to open broadly lower Wednesday.

The U.K.'s FTSE 100 index is expected to open 4 points lower at 8,242, Germany's DAX down 40 points at 20,308, France's CAC down 22 points at 7,477 and Italy's FTSE MIB down 83 points at 34,922, according to data from IG.

Traders will be keeping an eye on European consumer confidence and economic sentiment data. On the earnings front, Shell is set to release its fourth-quarter update.

— Holly Ellyatt