The pan-European Stoxx 600 closed up 0.31 percent provisionally, with most sectors turning positive by the close.
Europe's media stocks were some of the top performers Wednesday, finishing up 0.44 percent as a sector, amid earnings news. European broadcaster Rtl Group reported stronger-than-anticipated second-quarter revenue growth and confirmed its outlook for the remainder of the year. Shares of the firm rose 2.25 percent.
In other corporate news, British luxury car firm Aston Martin announced it may launch an initial public offering (IPO) in London. Aston Martin is most famously known as the car brand of choice for James Bond.
Looking at individual stocks, British software firm Micro Focus surged after the company announced it would launch a buy-back program. Shares of the London-listed stock climbed almost 3 percent on the news.
Italian luxury sports car-maker Ferrari jumped close to the top of the pan-European benchmark after HSBC upgraded the stock to "buy" from "hold." It was the STOXX 600's second best performer, jumping 4 percent.
Meanwhile, Spanish retailer Inditex slumped to the bottom of the index after Morgan Stanley cut its stock recommendation to "underweight" for the first time ever. The U.S. bank reportedly said it no longer feels comfortable ignoring the growing pressures the company is facing. Shares of Inditex came off its session lows, to close down 5.65 percent.
Sterling climbs; Turkish lira falls
The U.K.'s FTSE 100 index consequently slipped following sterling's rally. The bourse often weakens when sterling rises against the dollar, as many of its listed companies make their profits in dollars.
Elsewhere, worries around Turkey were renewed on Wednesday after fresh data showed that economic confidence had dropped to its lowest in almost a decade. Turkish Finance Minister Berat Albayrak reportedly said Wednesday that the government does "not see a big risk" to the country's economy. At Europe's close, the Turkish lira weakened to 6.439 against the U.S. dollar.
A recent breakthrough in efforts to revamp the North American Free Trade Agreement (NAFTA) sent U.S. stocks to new all-time highs in the previous trading session. The U.S. and Mexico found common ground on key trade terms on Monday, potentially ending a bitter impasse in relations since President Donald Trump came into office.
Canada's main trade negotiator is in Washington this week, with investors cautiously optimistic Ottawa may be able to preserve the three-nation pact. The Trump administration has warned it could press ahead with Mexico alone and impose charges on Canada if it does not come on board with the revised terms.