This is CNBC's live blog covering European markets.

European markets closed fractionally lower on Tuesday after a choppy session, as investors continued to monitor news from China over Covid restrictions.

The pan-European Stoxx 600 closed flat, down 0.1%, having given back earlier gains of more than 0.5%. Basic resources added 2.7% while chemicals stocks fell 1.7%.

Stocks in Hong Kong closed at session highs after Chinese health authorities reported an uptick in senior vaccination rates. Vaccinating more older people is considered key to reopening the economy, which is struggling with sporadic lockdowns across the country.

There has been some speculation that some kind of change to China's zero-Covid policy could be announced given growing unrest over continuing lockdowns.

China saw a drop in the number of daily infections Monday for the first time in more than a week.

The S&P 500 hovered around the flatline Tuesday as traders struggled to recover from sharp losses suffered in the previous session.

UK gilt market 'not back to normal', BOE governor says

The U.K. gilt market is "not back to normal" after the Bank of England intervened on Sep. 28, according to Governor Andrew Bailey, who spoke in front of a lawmakers' committee Tuesday.

The governor said the bank didn't want to buy index-linked gilts, but "had to solve" the problems triggered by former Prime Minister Liz Truss' mini-budget.

The gilt market was "within an hour of having a severe problem" when the bank stepped in, the governor added.

Ryanair bookings 'very strong' according to CEO, despite cost-of-living pressures

Ryanair's CEO said Christmas bookings are "very strong" when he spoke to journalists in Brussels.

"This winter is amazing ... Christmas is very strong," Michael O'Leary said.

O'Leary's comments come after rival airline easyJet said its holiday demand is holding up, despite growing pressure on household budgets.

— Hannah Ward-Glenton

Energy markets are facing ‘one or two years of extreme volatility,’ Enel CEO says

Francesco Starace, CEO at Enel, told CNBC's Steve Sedgwick that energy markets are facing "extreme volatility" for one or two years.

Starace spoke from the Goldman Sachs Carbonomics event.

Aroundtown Property drops 7% after results announcement

Shares of Aroundtown Property have dropped 7% after the German real estate company announced earnings for the first nine months of 2022.

Aroundtown made a net profit of 578 million euros ($598 million), which was roughly in line with guidance.

— Hannah Ward-Glenton

World is underestimating China right now, Allianz CIO says

"China is underestimated by the rest of the world right now, but the speed of reopening will be critical," Virginie Maisonneuve, Global CIO of Equity at Allianz told CNBC's "Street Signs Europe."

European markets have been flat Tuesday as investors consider the impacts of ongoing lockdown protests across China.

German inflation comes in below expectations in November

The German consumer price index shrank by 0.5% month-on-month in November for a 10% year-on-year increase, according to flash estimates from the federal statistics agency released on Tuesday.

This was below consensus forecasts for a 0.2% monthly decline and 10.4% annual increase. The figures will fuel expectations that inflation across the euro zone will post its first decline since mid-2020 later this week.

- Elliot Smith

Stocks on the move: HSBC up 5% on RBC deal, Aroundtown down 6%

HSBC shares climbed more than 5% by mid-afternoon to lead the Stoxx 600 after the British-headquartered bank agreed to sell its Canadian business to Royal Bank of Canada for 13.5 billion Canadian dollars ($10.4 billion).

At the bottom of the European blue chip index, Aroundtown shares fell more than 6% after the Luxembourg-registered real estate company's nine-month results.

- Elliot Smith

Euro zone sentiment jumps by more than expected in November

Economic sentiment in the euro zone rebounded by slightly more than expected in November, improving for the first time since Russia's invasion of Ukraine in February.

The economic sentiment indicator produced by the European Commission rose to 93.7 in November from 92.7 in October, slightly above consensus projections of 93.5 in a Reuters poll of economists.

Sentiment in industry deteriorated sharply, but was offset by a significant spike in services sentiment, while inflation expectations among both consumers and businesses also plunged.

- Elliot Smith

Credit Suisse shares hit record low

Credit Suisse shares slid to a fresh record low on Tuesday as investors offloaded subscription rights to new shares in the embattled Swiss lender.

Shares were down 3.4% by late morning to trade at just over 2.9 Swiss francs as the subscription rights plummeted on their second day of trading in Zurich, while five-year credit default swaps — a form of insurance on the company's bonds — shot to an all-time high.

Shareholders last week approved the bank's planned $4.2 billion capital increase, which is intended to fund a massive strategic overhaul after years of investment bank underperformance and compliance failures.

— Elliot Smith

China pushes for vaccination among elderly population

Chinese health authorities said that officials are "closely watching" the developments of Covid when asked if protests in the region would lead to shifts in its zero-Covid policy. CNBC's Karen Tso and Geoff Cutmore discuss the market reaction to the press briefing.

Stocks on the move: ASMI up 6%, Bridgepoint down 4%

ASM International shares climbed 6.5% in early trade to lead the Stoxx 600 after the Dutch semiconductor company upgraded its fourth-quarter guidance.

At the bottom of the index, British private equity firm Bridgepoint Group slid 4.7% after media reports suggested the firm is considering a $1 billion acquisition of energy transition investsor Energy Capital Partners.

- Elliot Smith

China likely won't make sudden changes to its Covid policy: National University of Singapore

The Chinese government is unlikely to make sudden changes to its zero-Covid policy as that will bring chaos, National University of Singapore Professor Wang Gungwu said on CNBC's "Squawk Box Asia."

"If you change the policy suddenly, I think the damage and the consequences would be even worse — it'd be really chaotic because I think the spread of Covid will be absolutely unprecedented," said Wang.

He added that he expects Chinese leader Xi Jinping to make adjustments on more local levels to ease public dissent.

Wang said Xi doesn't want to officially admit the "policy has been wrong for quite a while," but also cannot change it immediately.

– Jihye Lee

CNBC Pro: Asset manager names 9 'cheap' stocks to buy as recession fears grow

It's "critical" for investors to be looking at valuations right now as a recession is looming and inflation looks likely to continue, said Steven Glass, managing director of Pella Funds Management.

In this environment, Glass selected a list of nine stocks that he said, "look particularly cheap given their growth outlook."

CNBC Pro subscribers can read more here.

— Weizhen Tan

European markets: Here are the opening calls

European markets are heading for a higher open Thursday after U.S. Federal Reserve Chair Jerome Powell said smaller interest rate hikes could begin in December.

The U.K.'s FTSE index is expected to open 21 points higher at 7,604, Germany's DAX up 170 points at 14,580, France's CAC up 57 points at 6,788 and Italy's FTSE MIB up 228 points at 24,851, according to data from IG.

Data releases include euro zone unemployment and final purchasing managers' index figures for October and Germany's retail sales in October.

— Holly Ellyatt