European Stocks Rise on Fed Optimism and Political Developments

European stocks enjoyed a boost on Wednesday, buoyed by Federal Reserve Chair Jerome Powell’s encouraging remarks and anticipation surrounding key political events in France and the UK.

The pan-European STOXX 600 index rose 0.3%, marking its second gain in seven sessions. Investor sentiment was lifted by Powell’s comments regarding “significant progress” in recent data, although he emphasized the need for further assessment before adjusting monetary policy.

French stocks climbed 0.4% as opponents of the far-right National Rally party solidified their efforts to prevent it from gaining power in the upcoming run-off election. Meanwhile, the UK’s FTSE 100 index also advanced 0.4% ahead of the July 4 general election, which could potentially end the Conservative Party’s 14-year rule.

In company news, Volkswagen experienced a slight uptick after denying reports of an expanded partnership with Rivian, while Belgian postal operator Bpost plummeted 10.2% following a pessimistic full-year earnings forecast due to challenging market conditions in North America.