Investing.com - European stocks rallied on Wednesday, tracking their U.S. and Asian counterparts higher as investors awaited the release of euro zone inflation and unemployment data later in the day.
During European morning trade, the EURO STOXX 50 jumped 2.25%, France’s CAC 40 advanced 2.26%, while Germany’s DAX 30 surged 2.32%.
Concerns over the outlook for growth in the euro zone had mounted after data on Tuesday showed that Germany's annual rate of inflation slowed to zero in September, worse than forecasts of 0.1%.
The German consumer price index fell 0.2% from a month earlier, compared to expectations for a decline of 0.1%.
Market participants were looking ahead to reports on inflation and unemployment in the entire euro zone, for further indications on the strength of the bloc's economy.
Financial stocks were broadly higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) surged 2.36% and 2.30%, while Germany's Commerzbank (XETRA:CBKG) and Deutsche Bank (XETRA:DBKGn) rallied 1.66% and 2.51%.
Among peripheral lenders, Italy's Unicredit (MILAN:CRDI) and Intesa Sanpaolo (MILAN:ISP) jumped 1.58% and 1.67% respectively, while Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) advanced 1.91% and 2.62%.
Elsewhere, beleaguered carmaker Volkswagen (XETRA:VOWG) jumped 2.56% after saying on Tuesday that it will repair up to 11 million vehicles and overhaul its namesake brand following its rigging of emissions tests.
In London, FTSE 100 climbed 1.76%, as U.K. lenders tracked their European counterparts higher.
Shares in the Royal Bank of Scotland (LONDON:RBS) and HSBC Holdings (LONDON:HSBA) rallied 1.62% and 1.64% respectively, while Lloyds Banking (LONDON:LLOY) gained 1.88% and Barclays (LONDON:BARC) surged 2.47%.
Mining stocks added to gains. Rio Tinto (LONDON:RIO) advanced 2.19% after agreeing to sell its 40% stake in the Bengalla coal venture in Australia to New Hope Corp. for $606 million, while shares in Glencore (LONDON:GLEN) soared 6.67%.
Meanwhile, J Sainsbury (OTC:JSAIY) Plc skyrocketed 12.17% after the U.K. grocer said full-year adjusted profit may be slightly above analysts' estimates.
In the U.S., equity markets pointed to a sharply higher open. The Dow Jones Industrial Average futures pointed to a 0.95% jump, S&P 500 futures signaled a 0.95% gain, while the Nasdaq 100 futures indicated a 0.96% rally.