European stocks close higher as investors digest U.S. inflation, UK GDP; retailer Zalando up 19%

This was CNBC's live blog covering European markets.

European markets closed higher Wednesday, following a mixed trading session as investors digested the latest U.S. inflation report and U.K. gross domestic product figures.

The benchmark Stoxx 600 index closed up 0.2%. Retail stocks rose 3.3%, with Germany's Zalando and Spain's Inditex among the top gainers after reporting results.

On Tuesday, U.S. inflation figures for February showed a rise of 0.4% for the month and an increase of 3.2% from a year ago. That was in line with economists' monthly forecast but higher than the 3.1% they expected for the annual figure, according to the Dow Jones consensus.

U.S. stocks rallied after the data, with the S&P 500 and Nasdaq Composite each gaining more than 1%, although stocks have since pared gains.

Investors on Wednesday were monitoring U.K. economic data, which showed a return to moderate growth in January. Services output growth of 0.2% and a bounce in construction output drove gains.

James Smith, developed markets economist at ING, said that while one month of data shouldn't be overstated, the figures were consistent with a "gradual recovery in activity" in the coming months.

"We think the decline in overall fourth quarter GDP, which marked the second consecutive quarter of negative growth and therefore a technical recession, is unlikely to be repeated in the first quarter of 2024," Smith said in a note.

Corporate results meanwhile also landed for sportswear giant Adidas, which reported an operating loss of 377 million euros ($412 million) in the fourth quarter and warned of a sales decline in its overstocked North American market in 2024.

Shares of U.K. construction group Balfour Beatty rose 9% on Wednesday on the back of strong