European markets bucked a global trend to end the Wednesday session higher.
The blue-chip Stoxx 600 index reversed the morning losses and provisionally closed up 0.53%, with most sectors higher. Construction stocks led gains, up by 1.8%. European banking stocks lost 0.6% after Barclays announced a 19% slide in annual net profit.
European markets
The U.K. FTSE 100 hit yet another record high, breaching the 8,000 points threshold for the first time and ending the session 0.55% higher on the day.
Despite relatively gloomy economic forecasts for the U.K. economy, a majority of FTSE 100 firms derive their revenue from overseas, and investors have been attracted to the energy, financial and commodities firms and dividend-paying defensives.
U.K. CPI data published Wednesday showed inflation fell for the third month in a row January to hit 10.1%, according to the Office for National Statistics, below Reuters economists' expectations near 10.3%.
Major bourses were even stronger, with France's CAC 40 up 1.2% and Germany's DAX up 0.8%.
European optimism came despite MSCI's global gauge of stocks declining and U.S. stocks falling in morning trade, after U.S. retail sales for January far exceeded expectations with a 3% monthly rise.
Meanwhile, U.S. inflation grew slightly more than expected Tuesday, sending Asia-Pacific markets lower.