European Stocks Close at Record Highs

European stocks closed at record highs on Wednesday, erasing losses from the two previous sessions with strong support from banks and industrial giants as markets assessed the impact of fresh tariffs from the EU.

The Eurozone's STOXX 50 jumped 0.8% to 5,656 and the pan-European STOXX 600 rose 0.8% to 574.

Heavyweight financial companies led the gains on the session, tracking the strong session for key government bonds in the currency bloc as markets reassessed fiscal risks on the EU amid the political crisis in France and additional debt taken by Germany.

Allianz, Santander, UniCredit, AXA, and BBVA gained between 2% and 1.8%.

Luxury brands and industrial giants were also higher, with Siemens, LVMH, Hermes, and Safran rising more than 1.5%.

In the meantime, the EU announced plans to cut tariff-free quotas on imported steel shortly after raising tariffs on the metal to 50%.

Steelmakers ArcelorMittal and ThyssenKrupp soared 6.6% and 4.7%, but auto makers recorded sharp losses.