BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - French stocks rallied on Wednesday after British MPs wrestled control of parliament and moved to block a no-deal Brexit, and Italy's anti-establishment 5Star Movement received approval from party members to form a new coalition government with the center-left Democratic Party.
Investors also cheered media reports suggesting that Carrie Lam, Hong Kong's chief executive, is set to withdraw the widely unpopular extradition bill that set off months of protests in the city.
The day's economic data proved to be a mixed bag, with euro zone business growth improving slightly since July while the region's retail sales dropped in July due to a decline in the sales of clothing.
Data released earlier in the day showed that activity in China's services sector expanded at the fastest pace in three months in August.
The benchmark CAC 40 was up 63 points, or 1.14 percent, at 5,529 after declining half a percent the previous day.
Luxury goods company LVMH Moet Hennessy Louis Vuitton rallied 3.3 percent and Gucci owner Kering jumped nearly 4 percent ahead of an announcement on the formal withdrawal of a China extradition bill that sparked unprecedented political unrest in Hong Kong.
Defense electronics group Thales soared 6.3 percent after reporting higher first-half profits.
Copyright RTT News/dpa-AFX