In Europe, Italian newspaper Corriere della Sera reported Wednesday that the government was planning to lower its deficit from 2.2 percent in 2020, to 2 percent in 2021, from an expected 2.4 percent next year. Though the spending plans are much higher than what the previous government planned, the willingness to decrease the deficit in the coming years lifted sentiment. On Wednesday, Italy's FTSE MIB closed up 0.84 percent.
Looking at individual stocks, Altran Technologies led the gains in Europe, finishing up 9.13 percent, following a ratings upgrade. Also among the biggest climbers was ITV, which jumped over 3.5 percent after denying speculation that it would bid for Endemol Shine, the production company behind "Big Brother" and "Masterchef."
At the other end of the index stood Norsk Hydro, which dropped 11.85 percent, hitting the bottom of the continental benchmark after it said it would halt production at Brazil's Alunorte, the world's largest alumina refinery. Shares of Tesco slumped 8.6 percent, after the supermarket retailer's saw its first half profit miss analysts' forecasts, following weak trading seen overseas.
Luxury carmaker Aston Martin started trading on the London Stock Exchange for the first time. However, shares ended deep in the red, following its market debut on the back of concerns that the brand will struggle to deliver an ambitious roll-out of new models.