Europe Markets

Europe shares close higher as Deutsche Bank rallies

European stocks rise on Deutsche rebound
European stocks rise on Deutsche rebound

European indexes closed higher on Wednesday, with investor sentiment buoyed by a rally in Deutsche Bank shares and a strong performance in the basic resources stock sector.

The pan-European STOXX 600 index closed around 0.7 percent higher, with all sectors and major bourses in positive territory.

The U.K.'s FTSE 100 ended provisionally 0.5 percent higher, while the German DAX and the French CAC index both closed roughly 0.8 percent higher.

Europe market close

European markets

The DAX was boosted by shares of Deutsche Bank, which closed over 2 percent higher, bouncing back after several sessions of heavy selling. This came after it was asked to pay a settlement by the U.S. Department of Justice and speculation that it was seeking help from the German government.

The European basic resources stock sector closed up 1.4 percent. Strong performers included Rio Tinto and Arcelormittal, which both closed over 2 percent higher.

U.S. stocks opened slightly higher on Wednesday, before paring gains as several U.S. Federal Reserve spoke and a meeting of major oil-producing countries concluded.

On Wednesday, oil prices rose in early trade before declining

Meanwhile, Petrofac shares rallied as much as 4 percent after Goldman Sachs upgraded its outlook on the firm. Shares closed up 2.7 percent.

Steinhoff saw its shares close 3.9 percent higher, after the retail group announced on Wednesday that it was planning a capital increase.

ICAP shares lost nearly 4 percent in early deals after a rating downgrade from Citigroup. Its shares closed 3.6 percent lower on the day.

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