European Stocks Rise on Wednesday

European stocks rose for the first time in three sessions on Wednesday, with the STOXX 50 gaining 0.6% and the STOXX 600 adding 0.4%, as a modest retreat in oil prices and stable bond yields offered investors some relief and a breather.

Meanwhile, traders eagerly awaited the Fed’s monetary policy decision, with markets pricing in roughly a 93% probability of a 25bps increase in the fed funds rate.

The banking sector was among the top gainers, including HSBC (+1.5%), Banco Santander (+0.8%), BNP Paribas (+1.0%), and Standard Chartered (+1.7%).

HSML Holding also advanced 2.2%, while Barratt Redrow surged nearly 8% to top the STOXX 600, after its full-year results beat expectations despite trimming its home completions target for fiscal 2027.

On the downside, Marks & Spencer fell 4.3% to the bottom of the main stock index.

SAP (-1.2%) and L’Oréal (-1.3%) also traded lower.