Major European stock indices traded higher on Wednesday, with the STOXX 50 up 0.7% and the STOXX 600 gaining 0.4%, reflecting broad investor optimism amid expectations of a Federal Reserve rate cut next month.

Softer-than-expected U.S. economic data and continued signals from Fed officials supporting additional monetary easing boosted sentiment. Investors were also awaiting UK Chancellor Rachel Reeves’ upcoming budget presentation.

Markets kept an eye on developments in Ukraine, where President Volodymyr Zelenskiy indicated willingness to advance a U.S.-backed framework to end the conflict with Russia.

Among individual movers, ASML Holding (+2.8%), L’Oréal (+1.4%), and Siemens Energy (+2.5%) posted strong gains, while SAP (-0.2%) and Nestlé (-0.9%) lagged.

The positive performance underscores how global macro signals and geopolitical developments continue to shape European equity markets.