European stocks closed sharply higher on Wednesday, recouping part of the previous session’s steep losses. The rebound tracked a late-session recovery in North American equity markets and reflected a somewhat less pessimistic mood despite recent spikes in European energy prices.
The Eurozone’s STOXX 50 rose 1.7% to 5,872, while the pan-European STOXX 600 gained 1.4% to 612.
Banks led the advance after having driven the previous day’s declines, supported by a recovery in European government bonds as easing natural gas prices tempered fears of runaway inflation. Santander, BBVA, and Nordea each climbed more than 3%.
Technology shares also moved higher, mirroring a sector-wide rebound on Wall Street. ASML gained 3.5%, and Infineon jumped 5.4%.
Sentiment toward the corporate sector was further buoyed by reports that the European Union will be exempt from upcoming increases in US global tariffs, as indicated during the session by US Treasury Secretary Bessent.