FX.co ★ European Stocks Rise on Wednesday

European stocks advanced on Wednesday, breaking a three-session losing streak. The STOXX 50 gained 0.6% and the STOXX 600 rose 0.4%, supported by a modest pullback in oil prices and steady bond yields, which offered investors some respite. Market participants were also focused on the upcoming Federal Reserve monetary policy decision, with futures implying about a 93% probability of a 25 bps increase in the federal funds rate.

Banks were among the strongest performers, with HSBC up 1.5%, Banco Santander 0.8% higher, BNP Paribas rising 1.0%, and Standard Chartered advancing 1.7%. HSML Holding climbed 2.2%, while Barratt Redrow jumped nearly 8% to top the STOXX 600 after its full-year results beat expectations, even as the company lowered its home completions target for fiscal 2027.

On the downside, Marks & Spencer dropped 4.3%, making it the weakest performer on the main index. SAP fell 1.2% and L’Oréal slipped 1.3%.