This is CNBC's live blog covering European markets.

LONDON — European stock markets closed higher Thursday as investors cheered the prospect of the European Central Bank pausing interest rate hikes as soon as September.

The pan-European Stoxx 600 provisionally closed up 1.4%, extending earlier gains following the ECB announcement of its latest monetary policy decision.

Media stocks rocketed 4.2% higher as tech climbed 4.1%, with futures on the U.S. Nasdaq-100 also buoyant following strong results from Meta.

The ECB's widely-expected 25 basis points brings its main rate to 3.75% and marks a full year of consecutive rate hikes in the euro zone.

"Inflation continues to decline but is still expected to remain too high for too long," the central bank said in a statement.

However, the central bank also hinted at a possible pause to rate hikes Thursday.

Speaking at a press conference, ECB President Christine Lagarde said her team is "open-minded" about upcoming decisions and might hike or hold rates steady in September.

Meanwhile on Wednesday, the Fed raised the funds rate to a target range of 5.25%-5.5%, the highest level since early 2001. But close attention was being paid to the messaging for clues as to what's still to come.

Chairman Jerome Powell said inflation had moderated somewhat since the middle of last year, but hitting the Fed's 2% target was a long way off.

"I would say it's certainly possible that we will raise funds again at the September meeting if the data warranted," Powell said. "And I would also say it's possible that we would choose to hold steady and we're going to be making careful assessments, as I said, meeting by meeting."

Earnings season continues in full force, with results from Shell, Renault, Mercedes and many more.

— CNBC's Jeff Cox and Silvia Amaro contributed to this report

ECB keeps hiking door open but likely nervous of economic data: ING

The European Central Bank's messaging Thursday keeps the door for further rate hikes "wide open," ING's global head of macro, Carsten Brzeski, said in a note.

"After the June pre-announcement, it was hard not to hike interest rates today. The ECB has been too explicit that the risk of stopping rate hikes prematurely is much higher than going too far," he said.

"However, the recent batch of negative data from the eurozone, i.e., weak PMIs and a weak Ifo index, another drop in demand for new bank loans, tighter lending standards and weak loan growth must have had a terrifying impact on sentiment in the EuroTower, even if this was not reflected in the policy statement."

He added that the ECB is running the risk of being behind the curve. "This time not by being too benign on inflation but rather by being too optimistic and too benign on the economic impact of its own policy measures."

— Jenni Reid

US stocks open higher Thursday

The major averages opened higher Thursday.

The Dow Jones Industrial Average rose 43 points, or 0.14%. The S&P 500 gained 0.7%, while the Nasdaq Composite added 1.27%.

— Sarah Min

Europe stocks higher as ECB hikes by 25 basis points

As expected, the European Central Bank raised interest rates by a quarter percentage point, bringing its main rate to 3.75%

The Stoxx 600 was 1.17% higher at 1:30 p.m. BST following the announcement at 1:15 p.m., slightly extending gains made through the morning.

Attention now turns to a speech by ECB President Christine Lagarde at 1:45 p.m. for indications of what the central bank may opt for at its September meeting.

In a statement, the ECB said it remained data-dependent and that inflation was "still expected to remain too high for too long."

— Jenni Reid

Shell CEO: Focused on creating more value with fewer emissions

Oil giant Shell CEO Wael Sawan says the company will be more disciplined with its capital.

Europe stocks higher

European stocks were higher early Thursday, with the regional Stoxx 600 index up by 0.75% at 8:45 a.m. BST after stumbling on its six-session winning streak Wednesday.

Media stocks climbed 3.5% and tech gained 1.8%. Oil and gas stocks posted the biggest sector decline, down 1%, as Shell results missed analyst expectations.

— Jenni Reid

Barclays second-quarter profit hits target

Barclays said Thursday that it expects to earn less interest in its U.K. division, as analysts flagged the bank's "modestly disappointing" set of results.

The British lender reported a net income of £1.3 billion ($1.68 billion) for the second quarter, in line with expectations, despite slower momentum in investment banking.

Analysts were expecting a net income of £1.4 billion for the quarter, according to Refinitiv. 

Read the full story here.

— Silvia Amaro

Europe stocks head for higher open

European stocks are seen opening higher Thursday, according to IG data.

The FTSE 100 was last seen starting the session up by 22 points at 7,694, with France's CAC up 55 points to 7,365 and Germany's DAX up by 55 points to 16,179.

— Jenni Reid

Fed hikes rates to highest level in more than 22 years

The Federal Reserve raised rates by a quarter-point Wednesday, as was widely expected. The increase pushes the benchmark rate to a range of 5.25%-5.5%, its highest level in more than 22 years.

The central bank also said it will "continue to assess additional information and its implications for monetary policy," echoing its data-dependent approach to monetary policy.

— Fred Imbert, Jeff Cox

CNBC Pro: Here's what happens to the Dow after a 13-day streak of gains, according to history

The Dow Jones Industrial Average closed higher for 13 consecutive days this week, notching its longest winning streak since 1987.

CNBC Pro also crunched the numbers for investors nervous over stocks reaching giddy heights.

CNBC Pro subscribers can learn more about how stocks typically perform in the week, month and quarter after a winning streak here.

— Ganesh Rao

Meta Platforms jumps on strong earnings, guidance

Shares of Meta Platforms popped 7% after reporting stronger-than-expected quarterly results and issuing uplifting guidance for the current period.

The social media company reported earnings of $2.98 per share on revenues of $32 billion. That beat the EPS of $2.91 and $31.12 billion in revenue expected by Refinitiv. Meta also said that revenue increased 11% from the year-ago period.

For the third quarter, Meta said it expects revenue to range between $32 billion to $34.5 billion. Analysts polled were expecting third-quarter sales of $31.3 billion.

— Samantha Subin, Jonathan Vanian