Investing.com - European stocks moved sharply higher on Wednesday, amid fresh earnings reports and as investors eyed the release of German business climate data due later in the day.
During European morning trade, the EURO STOXX 50 rallied 1.10%, France’s CAC 40 advanced 1.04%, while Germany’s DAX 30 jumped 1.12%.
Markets were jittery after Donald Trump on Monday formally withdrew the U.S. from the Trans-Pacific Partnership trade accord, distancing America from its Asian allies.
He has also said he intends to renegotiate the North American Free Trade Agreement between the U.S., Canada and Mexico, in order to better serve U.S. interests.
Investors were also digesting the U.K. Supreme Court ruling on Tuesday that British Prime Minister Theresa May must seek parliamentary approval before triggering the process to exit the European Union.
Financial stocks were broadly higher, as French lenders Societe Generale (PA:SOGN) and BNP Paribas (PA:BNPP) surged 2.60% and 2.24%, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) rallied 1.90% and 1.89%.
Among peripheral lenders, Italy’s Unicredit (MI:CRDI) soared 3.45%, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) jumped 1.71% and 2.83% respectively.
Banco Santander said earlier Wednesday that its net profit increased by 25 million euros in the fourth quarter to 1.60 billion euros.
Elsewhere, Novartis AG (SIX:NOVN) gained 0.36% after the Swiss drugmaker reported a 2% declined in core operating income in its latest fiscal year due to "generic erosion and growth investments." However, the company’s net income increased by 1%.
In London, commodity-heavy FTSE 100 advanced 0.68%, boosted by sharp gains in the mining sector.
Shares in Rio Tinto (LON:RIO) and BHP Billiton (LON:BLT) rallied 1.12% and 1.65% respectively, while Glencore (LON:GLEN) jumped 1.77% and Antofagasta (LON:ANTO) surged 5.64%.
In the financial sector, stocks were also sharply higher, as HSBC Holdings (LON:HSBA) advanced 1.08% and Barclays (LON:BARC) jumped 1.27%, while Lloyds Banking (LON:LLOY) and the Royal Bank of Scotland (LON:RBS) rallied 1.40% and 1.77% respectively.
Meanwhile, Vodafone (LON:VOD) was one of the worst performers on the index, with shares down 1.58%, even after the company won a court victory in Germany on Tuesday in a dispute with Deutsche Telekom (DE:DTEGn) over how the former state monopoly charges for the use of cable ducts.
BT Group (LON:BT) added losses, as shares slid 0.30% after reporting accounting problems in its Italian business.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.28% increase, S&P 500 futures showed a 0.27% rise, while the Nasdaq 100 futures indicated a 0.34% gain.