European Stocks Rebound Despite Geopolitical Tensions

Europe's main stock index rebounded after three consecutive declines, led by construction and bank shares. The pan-European STOXX 600 saw a 0.6% rise, with geopolitical tensions easing. UK stocks lagged due to inflation concerns, while Sage Group saw a significant profit-driven surge.

After three days of declines, Europe's major stock index opened with a strong performance on Wednesday, thanks to a recovery led by the construction and banking sectors. The easing of geopolitical tensions allowed for a retreat from safe-haven bids, boosting market sentiment.

The pan-European STOXX 600 recorded a 0.6% increase as of 0815 GMT, after hitting a three-month low on Tuesday. The rebound comes amid a decline in the Swiss franc and U.S. government bond prices, and a dip in the dollar to a one-week low in intraday trading.

In geopolitical developments, Russian President Vladimir Putin expressed a willingness to discuss a ceasefire deal in Ukraine with U.S. President-elect Donald Trump, laying aside significant territorial concessions and Ukraine's NATO ambitions. In the U.K., stocks underperformed due to inflation exceeding the Bank of England's 2% target, reflecting caution on rate cuts.

(With inputs from agencies.)