The pan-European Stoxx 600 closed provisionally up by 1.8 percent, with all sectors and major bourses in positive territory.
European Markets: FTSE, GDAXI, FCHI, IBEX
Looking at individual stocks, shares in Germany’s biggest lenders Deutsche Bank and Commerzbank have risen over 5 percent after a report that the German government is conducting high-level discussions to smooth the path for a possible merger.
France’s Pernod Ricard was aso among the top gainers in Europe. Its shares surged after the company said senior management had held talks with Elliott Management, after reports that Paul Singer’s activist hedge fund had taken a stake in the drinks firm. The stock surged more than 5 percent and hit a fresh record high.
Meanwhile, Danish jewelry maker Pandora slumped to the bottom of the index after Carnegie reportedly cut its price target for the firm by 7 percent Wednesday morning. It comes after weak sales momentum for the Copenhagen-listed company, with its shares tumbling more than 11 percent.
In an interview with Reuters on Tuesday, Trump also said he would intervene in the Justice Department’s case against a top executive at Chinese telecoms giant Huawei if it would help serve national security interests or help U.S.-Sino trade talks.
Trump’s comments on a potential deal with China also translated into gains in equity markets stateside, with the Dow Jones Industrial Average climbing more than 300 points at the open. Investor sentiment was also buoyed by a report that China is looking to increase access to its market for foreign companies, in a bid to improve U.S.-China trade relations.
Back in Europe, investors continued to monitor deepening political turmoil in the U.K. It comes amid an intensifying backlash against May’s leadership while she tries to salvage her Brexit deal.
The threshold of support needed to trigger a confidence vote in the prime minister was reached Tuesday evening, according to Graham Brady, chairman of the Conservative Party’s ’1922 Committee’, a group of influential backbench members of parliament (MPs).
The vote is scheduled to take place Wednesday evening between 6 p.m. and 8 p.m. London time.
Sterling initially fell into negative territory on the news, before jumping more than 1.4 percent higher to around 1.2663 against the U.S. dollar.