BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - French stocks rallied on Wednesday as auto stocks gained ground after reports that merger talks between Fiat Chrysler Automobiles and Renault have gained traction.
Investors also kept a close eye on developments in Italy after Giuseppe Conte resigned as Prime Minister, passing the baton over to President Sergio Mattarella to decide whether to call new elections or ask parties to form a new government.
Italian bonds breathed a sigh of relief despite the political upheaval in the country.
The benchmark CAC 40 index was up 75 points, or 1.40 percent, at 5,419 after giving up half a percent the previous day.
Renault shares jumped as much as 4.5 percent while Peugeot advanced 1.5 percent.
Banks BNP Paribas, Credit Agricole and Societe Generale were up over 1 percent each as Treasury yields ticked higher after retreating on Tuesday.
Copyright RTT News/dpa-AFX