This is CNBC's live blog covering European markets.

European markets fell sharply on Wednesday, extending a gloomy start to new year trading.

The Stoxx 600 index closed down 0.9% following a mixed trading session. Food and beverage stocks ended up 0.2%, while construction and material fell 2.9% and technology declined 1.9%.

Danish shipping giant Maersk extended Tuesday's gains to close 5.1% higher after announcing it would keep trade routes through the Red Sea on pause owing to security concerns, which could drive ocean freight rates higher.

Stocks made a strong start to 2024, with the Stoxx hitting its highest level in nearly two years Tuesday, but lost momentum before the end of the session to close slightly lower.

Asia-Pacific markets fell overnight, with stocks in South Korea and Taiwan leading declines as major tech firms including chipmakers came under pressure after Barclays downgraded Apple.

Meanwhile, U.S. stocks slipped in early trading after the Nasdaq Composite registered its worst session since October.

U.S. markets open lower

U.S. stocks opened lower Wednesday, a day after the Nasdaq Composite cinched its worst daily decline since October.

The tech-heavy index was 0.7% in early deals, while the S&P 500 was 0.5% lower. The Dow Jones Industrial Average also fell 0.4%.

— Karen Gilchrist

Maersk shares higher as Red Sea turmoil continues

Shipping giant Maersk saw a second session of strong gains, up 4.6% at 2:08 p.m. in London, after Goldman Sachs analysts upgraded the stock to "neutral" from "sell."

Maersk on Tuesday said it would extend its suspension of travel via the Red Sea after one of its ships was targeted by Houthi militants with missiles and small boats.

The Red Sea issue is "financially good for the carriers," Mikkel Emil Jensen, senior analyst at Sydbank, told CNBC's "Squawk Box Europe."

"You are pulling out capacity from the market at a time when demand is not very strong."

— Jenni Reid

It's time to sell risk assets in a 'Reverse Goldilocks' environment, according to HSBC

HSBC believes it's time for investors to cut their exposure to risk assets.

That's because the bank believes that following the latest Goldilocks rally, the next stage will be a return to a "Reverse Goldilocks" environment.

"Markets typically trade the direction of travel / rate of change. And that's down and negative. The Fed's dovish pivot in December amplifies this Goldilocks backdrop even more," analyst Max Kettner wrote in a Wednesday note.

The analyst added that he's since cut his overweight on equities to wait for a better reentry point in terms of investor positioning and sentiment. Specifically, within stocks he's decreased his exposure to U.S. and European assets to underweight from overweight.

— Lisa Kailai Han

UK economy ‘substantially less competitive’ than the U.S., Atomos strategist says

Haig Bathgate, head of investments at Atomos, weighs in on the economic outlook for the U.K. and U.S.

Europe stocks open mixed before turning higher

European stocks had a muted open, with the regional Stoxx 600 index starting the session flat before nudging 0.2% higher by 8:20 a.m. London time.

Sectors remained a mixed bag, with health-care stocks up 1.04% and technology and mining both down by around 0.6%.

The U.K.'s FTSE 100 was up 0.25% while France's CAC 40 dipped 0.1% and Germany's DAX was flat.

— Jenni Reid

Turkish inflation rises to 64.8%

Inflation in Turkey rose to 64.8% on an annual basis in December, an acceleration from 62% in November.

It was nonetheless slightly below expectations of economists polled by Reuters of 65.1%, while month-on-month inflation cooled to 2.9% from 3.3%.

Price rises in the county hit a peak of 85.5% in October 2022 amid a sharp deterioration in the lira, and while the Turkish central bank stuck to an unorthodox monetary policy of low interest rates.

The central bank has since changed course, and in June began hauling rates higher under its new Governor Hafize Gaye Erkan.

— Jenni Reid

CNBC Pro: Goldman added these stocks to its conviction list — giving them more than 50% upside

Goldman Sachs added a number of stocks to its lists of top picks, and a number of them were given significant upside.

Called the "Conviction List - Directors' Cut," the lists encompass the United States, Europe and Asia-Pacific.

Those lists are the bank's "curated and active" picks of between 15 and 30 top buy-rated stocks for each region.

CNBC Pro takes a look at five, one of which was given more than 100% upside. All price targets are for the 12 months from December 2023.

Subscribers can read more here.

— Weizhen Tan

CNBC Pro: Investing pro says some sectors in China have 'astonishing strength' — and names stocks to play in 2024

China's sluggish economy and property troublesturned manyinvestors bearish in 2023 — but one sees a lot of promise in certain parts of the country's market.

"The view has been, 'why would you invest in the [Chinese economy]?'… I think there's a lot of folks who are a little bearish, perhaps they think that China is on the verge of a collapse. I don't share that view," said Kingsley Jones, founder and chief investment officer at the Australia-headquartered investment firm Jevons Global.

"I think that there is a strong part of the Chinese economy; so, don't buy the Chinese economy as a whole, buy the strength," he said, naming sectors - and stocks he is bullish on.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

European markets: Here are the opening calls

European markets are set to open in negative territory Wednesday.

The U.K.'s FTSE 100 index is expected to open 16 points lower at 7,717, Germany's DAX down 50 points at 16,719 and France's CAC down 16 points at 7,514, according to data from IG. 

German unemployment data for December is released Wednesday.

— Holly Ellyatt