VIENNA (dpa-AFX) - European stocks rose on Wednesday, as banks rebounded from recent losses and oil prices stabilized after tumbling around 3 percent overnight following comments by Saudi Arabia and Iran.
Regional economic reports painted a mixed picture, with the GfK research group's forward-looking consumer sentiment index for Germany falling slightly, while a measure of French consumer sentiment remained stable in September.
The pound turned lower against the euro and dollar after BoE deputy chief suggested that more easing will be required to prevent a sharp slowdown.
Separately, ECB President Mario Draghi has urged Eurozone governments to implement structural reforms to raise potential output and boost long-run interest rates.
The pan-European Stoxx Europe 600 index was up 0.9 percent in midday trading ahead of a crucial OPEC meeting and Fed Chair Janet Yellen's testimony to Congress.
The German DAX and France's CAC 40 index were up around 1 percent each while the U.K.'s FTSE 100 was moving up 0.8 percent.
Deutsche Bank rallied about 2 percent in Frankfurt after the German lender announced it has reached an agreement with Phoenix Life Holdings Limited, a subsidiary of Phoenix Group Holdings Limited, to sell its Abbey Life business for 935 million pounds.
Rivals Commerzbank, BNP Paribas, Credit Agricole, Societe Generale and Lloyds Banking Group climbed 1-2 percent.
TUI shares rose over 1 percent after the tour operator updated investors on recent trading and lifted its 2015/16 core profit guidance.
UK Mail Group shares jumped as much as 43 percent in London. Germany's Deutsche Post DHL has agreed to buy the British letter and parcel delivery service for 440 pence per share in cash, valuing the entire issued ordinary share capital of the latter at about 242.7 million pounds.
Engineering conglomerate Smiths Group rallied 2.5 percent after its fiscal 2016 pre-tax profit increased to 346 million pounds from 325 million pounds last year.
Total SA, BP Plc and Royal Dutch Shell all rose about 1 percent, and Tullow Oil soared over 4 percent, as oil prices edged up ahead of the OPEC meeting and the EIA weekly report on crude inventories, slated for release later in the session.
Copyright RTT News/dpa-AFX