European stocks closed higher on Thursday as U.S. Treasury yields retreated. However, two notable exceptions were Alstom and Metro Bank, both of which saw significant declines.

In the early trading session, Alstom, the French train manufacturer, experienced a sharp decline of 37% following a warning about its free cash flow.

Meanwhile, London-listed Metro Bank saw its shares drop by more than 25% amid reports that it is seeking to raise £600 million ($727 million) in debt and equity.

On a more positive note, jewelry maker and retailer Pandora emerged as the top gainer, with its stock rising by 12% after revising its growth targets upwards.

The retreat in the 10-year Treasury note rate, which reached levels last seen in 2007, was attributed to payroll processing firm ADP's announcement that private job growth for September only totaled 89,000, significantly below the Dow Jones estimate of 160,000. This development appeared to reassure investors that the labor market is stabilizing.

Furthermore, Asian-Pacific markets demonstrated gains overnight in response to the pullback in Treasury yields.

Pandora's impressive performance continued as the company raised its like-for-like compound annual growth rate target for the years 2023 to 2026 to 4-6%, up from the previous range of 3-5%. Additionally, the company aims to generate between 16 billion Danish krone ($2.256 billion) and 17 billion Danish krone in free cash flow from 2024 to 2026.

CEO Alexander Lacik spoke about the company's strategy, stating, "Uncertainty is quite high in the macro, but what we've experienced so far this year is actually healthy traffic into our sales channels." He emphasized a return to Pandora's roots, focusing on affordability and desirability. The company also renewed its focus on the charms business, which was integral to Pandora's origins.

Lacik noted that the company intends to enhance desirability through marketing efforts and expand its product range. In addition, Pandora announced plans to enter the Indian market and expand its presence in other Asian regions, although it indicated that growth in China may be slower than initially projected.