European stocks rise on Wednesday

European equities extended their winning streak on Wednesday, with the STOXX 50 rising 0.5% and the broader STOXX 600 up 0.4%, as investor confidence grew on expectations of imminent rate cuts by the Federal Reserve next week and additional easing later this year.

Attention now turns to the European Central Bank, which is widely expected to hold borrowing costs steady on Thursday, though the release of updated economic forecasts and forward guidance will be key for gauging the outlook on inflation and growth across the eurozone.

Geopolitical tensions continued to weigh on sentiment. Israel launched airstrikes on Hamas positions in Qatar, while Poland reported intercepting drones that entered its territory during a fresh Russian barrage against Ukraine.

Adding to global trade frictions, reports indicated that US President Donald Trump has pressed the European Union to impose tariffs of up to 100% on imports from India and China in response to their continued purchases of Russian oil.

In France, political uncertainty eased somewhat as President Emmanuel Macron appointed Sébastien Lecornu as the new prime minister following François Bayrou’s departure after a parliamentary confidence vote.

On the corporate front, optimism in the technology sector was buoyed by Oracle’s upbeat earnings outlook, which lifted global peers, with SAP climbing 1.7% and ASML Holding advancing 0.9%.

Retail stocks also outperformed, led by Inditex, which surged 6.7% after reporting stronger sales in the period from August 1 to September 8, underscoring resilience in consumer demand despite a challenging macro backdrop.