Investing.com - European stocks were sharply higher on Wednesday, as markets recovered from the previous sessions' sharp losses posted amid growing concerns over Greece's financial situation.
During European morning trade, the EURO STOXX 50 jumped 1.06%, France’s CAC 40 advanced 1.06%, while Germany’s DAX 30 rallied 1.08%.
The International Monetary Funf confirmed that the Greek government failed to make a scheduled €1.6 billion loan repayment by close of business on Tuesday.
The fund said Greece can now only receive further funding after its arrears are cleared. Greece asked for a last-minute repayment extension on Tuesday, which the fund said it will consider "in due course."
A default by Greece wiIl add to fears over the country’s solvency and fuel doubts over the condition of Greek banks and the collateral they use for European Central Bank loans.
Euro zone finance ministers were to hold discussions later Wednesday but German Chancellor Angela Merkel has ruled out further negotiations until after Sunday's referendum in Greece on whether to accept the terms proposed by lenders for extending the country’s bailout.
Financial stocks were broadly higher, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) gained 0.78% and 1.34%, while Germany's Commerzbank (XETRA:CBKG) and Deutsche Bank (XETRA:DBKGn) rose 0.17% and 0.26%.
Among peripheral lenders, Italy's Intesa Sanpaolo (MILAN:ISP) and Unicredit (MILAN:CRDI) rallied 1.45% and 1.51% respectively, while Spanish banks BBVA (MADRID:BBVA) and Banco Santander (MADRID:SAN) advanced 0.82% and 0.97%.
Elsewhere, Airbus Group (PARIS:AIR) surged 2.97% after winning an order from China for as many as 75 A330 jets worth $18 billion at list prices.
In London, FTSE 100 climbed 0.88%, as U.K. lenders tracked their European counterparts higher.
Shares in HSBC Holdings (LONDON:HSBA) rose 0.22% and Lloyds Banking (LONDON:LLOY) gained 0.88%, while Barclays (LONDON:BARC) and the Royal Bank of Scotland (LONDON:RBS) jumped 1.34% and 1.45% respectively.
Mining stocks added to gains, with Fresnillo (LONDON:FRES) and Glencore Xstrata (LONDON:GLEN) advancing 0.65% and 0.88% respectively, while Rio Tinto (LONDON:RIO) climber 0.93% and Bhp Billiton (LONDON:BLT) rallied 1.34%.
Meanwhile, Tullow Oil Plc (LONDON:TLW) saw shares surge 1.91% after it raised this year’s production forecast following a strong performance from the company's largest field in Ghana.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.57% gain, S&P 500 futures signaled a 0.58% increase, while the Nasdaq 100 futures indicated a 0.57% climb.