Investing.com - European stocks were sharply higher on Wednesday, as markets recovered from Tuesday's broad selloff caused by political concerns in Greece and new restrictions on China's debt markets.
During European morning trade, the EURO STOXX 50 rallied 1.07%, France’s CAC 40 climbed 0.97%, while Germany’s DAX 30 jumped 1.09%.
Global equity markets came under pressure following a surprise decision by the Greek government to bring forward a parliamentary vote for president to next week, a move which could trigger early elections if Prime Minister Antonis Samaras’ candidate is not chosen.
Markets were also hit by a Chinese government decision to set new restrictions on collateral for short-term loans. The decision fuelled fears that China’s economy is slowing at a faster rate than anticipated.
Financial stocks were mixed, as French lenders BNP Paribas (PARIS:BNPP) and Societe Generale (PARIS:SOGN) rose 0.70% and 0.17%, while Germany's Deutsche Bank (XETRA:DBKGn) and Commerzbank (XETRA:CBKG) lost 0.36% and 1.06%.
Among peripheral lenders however, Italy's Intesa Sanpaolo and Unicredit gained 0.08% and 1.02% respectively, while Spanish banks BBVA and Banco Santander advanced 0.43% and 1.28%.
Elsewhere, Tui AG (XETRA:TUIGn) surged 2.36% after the German tour operator reported full-year earnings that beat analysts' estimates and forecast further growth for fiscal 2015.
In London, FTSE 100 advanced 0.51%, led by Ashtead Group (LONDON:AHT), up 5.85% as the industrial equipment rental company raised its full-year earnings guidance after posting a 33% rise in first-half profit.
Financial stocks were also on the upside, as Barclays and Lloyds Banking Group (LONDON:LLOY) added 0.27% and 0.32% respectively, while the Royal Bank of Scotland Group (LONDON:RBS) rose 0.33% and HSBC Holdings (LONDON:HSBA) gained 0.75%.
The Royal Bank of Scotland earlier announced that it will pull out of fixed-income trading in Japan and cut staff numbers by more than 200 to about 30, with most of the jobs going by February.
Meanwhile, mining stocks were mixed. Shares in Rio Tinto declined 0.51% and Glencore Xstrata (LONDON:GLEN) dropped 0.53%, while Bhp Billiton climbed 0.53% and Fresnillo (LONDON:FRES) jumped 1.50%.
Anglo American shares were up 0.12% amid reports the miner could write down the value of its iron ore and coking coal assets including its flagship Minas Rio project.
In the U.S., equity markets pointed to a steady to higher open. The Dow Jones Industrial Average futures pointed to a 0.10% rise, S&P 500 futures signaled a 0.07% gain, while the Nasdaq 100 futures indicated an 0.05% uptick.