European Stock Markets Rebound Amid Tech Surge

Europe's main stock index is rebounding, breaking a three-day decline thanks to a surge in technology stocks. Market focus is on Russia-Ukraine tensions and Trump's potential impact with his new administration. The STOXX 600 gains, supported by strong performances in Germany, France, and Spain.

Europe's leading stock index showed signs of recovery on Wednesday, ending a three-day losing streak as technology stocks experienced a resurgence. The geopolitical backdrop remains tense as investors keep an eye on developments involving Ukraine and Russia, particularly after Russia's recent nuclear posture adjustment.

Vladimir Putin suggested willingness to discuss a ceasefire with U.S. President-elect Donald Trump, pending specific conditions. By 0920 GMT, the STOXX 600 index had risen by 0.5%, rallying from its three-month low on Tuesday. Primary markets in Germany, France, and Spain contributed with advances between 0.4% and 0.9%. The dollar weakened, and Swiss franc holdings decreased as investors took riskier positions.

Danni Hewson from AJBell noted the importance of monitoring U.S. administrative moves, especially concerning tariff strategies under Trump's administration which might impact European markets. Meanwhile, the tech sector got a boost from Sage Group's positive earnings and share buyback announcement. Nvidia's upcoming results and the ECB's warning of an AI-related stock bubble are also key topics of interest.

(With inputs from agencies.)