European markets close higher after ECB cuts rates for the third time this year

This was CNBC's live blog covering European markets.

European markets closed higher on Thursday as traders assessed a flurry of corporate results and the European Central Bank's third interest rate cut of the year.

The pan-European Stoxx 600 provisionally closed 0.84% higher with almost all sectors and major bourses in positive territory.

Food and beverage stocks led the gains, ending 1.9% higher, while telecoms stocks dipped 0.34%.

The ECB on Thursday delivered its third interest rate cut of the year as inflation risks in the European Union ease faster than expected.

The central bank lowered the deposit rate by a further 25 basis points at its October meeting. It comes after price rises in the euro area cooled to 1.8% in September, below the central bank's 2% target.

In the Asia-Pacific region, China property stocks dropped on Thursday following a briefing by the country's housing ministry, dragging the broader CSI 300 index. Most other Asia-Pacific markets fell.

U.S. stocks rose Thursday on the back of strong economic data, easing lingering fears of a potential recession, while getting a boost from semiconductor names.

Stocks opened higher, extending their Wednesday rally.

The Dow Jones Industrial Average added 145 points, or 0.3%. The S&P 500 and Nasdaq Composite rose 0.5% and 0.9%, respectively.

— Lisa Kailai Han

There is "probably" more downside than upside risk to the ECB's inflation forecast, the group's President Christine Lagarde told CNBC's Annette Weisbach during the post-decision press conference.

Asked about recent warnings that the ECB now faces a return of its old challenge of too-low inflation, Lagarde said: "We can debate ad nauseum on this particular matter, and you will find views on both sides of the