This is CNBC's live blog covering European markets.

European markets opened higher Wednesday as markets keep an eye on a spike in tensions in the Ukraine-Russia war.

The pan-European Stoxx 600 index opened 0.45% higher, with all sectors in positive territory. The FTSE 100 was flat at the open after data showed U.K. inflation picked up sharply to a higher-than-expected 2.3% in October.

Global markets fell on Tuesday as investors reacted to Russia lowering the threshold for a nuclear strike, and after Ukraine used U.S.-made long-range ballistic missiles to attack Russian territory for the first time, stoking tensions between Russia and the West.

In the latest development, the U.S. closed its embassy in Kyiv on Wednesday, warning that it has "received specific information of a potential significant air attack."

Asia-Pacific markets were mostly lower overnight after a mixed day on Wall Street amid the mounting geopolitical tensions. U.S. stock futures ticked higher on Tuesday evening, as investors looked toward a key earnings report from tech giant Nvidia. Traders are looking for more details on demand for Nvidia's Blackwell AI chips, which CEO Jensen Huang last month characterized as "insane."

How the semiconductor giant fares — given its market capitalization of $3.6 trillion — could set the tone for the S&P 500 and the Nasdaq Composite for the rest of the week.

What does UK inflation data means for interest rate cuts?

The sharp pick-up in U.K. inflation to 2.3% in October on the back of higher energy prices means the Bank of England (BOE) is likely to take a more gradual approach to interest rate cuts, analysts note. They are saying Wednesday that the data likely closes the door on a December cut:

"Services inflation is set to bounce around 5% into the winter, while headline CPI could get close to 3% in January. That reduces the chance of a rate cut in December, but in the spring, we think there is still a good chance the Bank of England will accelerate its easing cycle," said James Smith, developed markets economist at ING, forecasting a pause at next month's BOE meeting.

Sanjay Raja, chief U.K. economist at Deutsche Bank Research, remarked that the latest inflation print "won't be as encouraging for the Bank of England, who have talked up a gradual approach in dialling down restrictive policy." The central bank, he said, will likely "take a more gradual and cautious path in cutting interest rates. For now, upward pressure in price momentum will rise."

Kris Hamer, director of insight at the British Retail Consortium, commented that the retail industry needs more help from the government, as it prepares for additional cost pressures as a result of U.K. Budget changes, including increases to employers' payroll tax and the minimum wage.

"For an industry that already operates on slim margins, these new costs will inevitably lead to higher prices. There is also the risk of job losses and store closures if retailers attempt to limit the impact on their customers. If the government wants to prevent a return to high inflation, it needs to consider mitigating the impact of these costs on retailers," Hamer said.

— Holly Ellyatt

U.K. inflation picks up in October

U.K. inflation picked up sharply to a higher-than-expected 2.3% in October, data from the British Office for National Statistics showed Wednesday.

The hike marks a sharp increase from the 1.7% rise recorded in September and exceeds the 2.2% forecast of economists polled by Reuters.

Core inflation, which excludes energy, food, alcohol and tobacco, came in at 3.3% for the month, up slightly from 3.2% in September.

Read more on the story here: UK inflation rises sharply to 2.3% in October, above expectations

— Karen Gilchrist

CNBC Pro: Burberry shares are down 40%. One hedge fund manager says the stock offers 'good value' right now

Is it time to buy the dip in luxury retailer Burberry's shares?

The London-listed fashion house told investors earlier this month that it will refocus on heritage designs and statement pieces as part of sweeping revamp plans to revive its ailing fortunes.

Hedge fund manager David Neuhauser made the case on CNBC's Squawk Box Europe this week.

CNBC Pro subscribers can read more here.

— Ganesh Rao

CNBC Pro: Three global stocks to own in 2025, according to Barclays

The outlook for equity markets looks "decent" going into 2025, according to Barclays, as central banks cut interest rates and the global economy remains resilient.

The bank named "overweight-rated stocks in which our analysts have high conviction in 2025 and see value in owning on an individual basis.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

European markets: Here are the opening calls

European markets are expected to open higher Wednesday.

The U.K.'s FTSE 100 index is expected to open 4 points higher at 8,106, Germany's DAX up 46 points at 19,108, France's CAC up 23 points at 7,252 and Italy's FTSE MIB up 118 points at 33,567, according to data from IG.

Earnings are set to come from Severn Trent and British Land. Data releases include U.K. inflation figures.

— Holly Ellyatt