Europe close: Stocks push ahead, periphery stocks lead

Europe's main stock market indices clocked in with big gains on Wednesday, driven by a strong Wall Street performance overnight and strong corporate news.

There were analysts in the City who were nevertheless somewhat cautious.

"Stock markets have found the going easier thanks to the lack of central bank meetings, and earnings have not had the shock or awe impact that dominated last week," said IG's chief market analyst, Chris Beauchamp.

"While there is still a lingering sense of unease, price action at the moment continues to point towards the buyers having rescued the situation once again."

The pan-European Stoxx 600 index was up 1.72% to 473.33 as investors cast aside inflationary worries and focused on a steady stream of corporate news. Regional bourses were all higher, although it was periphery stocks that fared best.

Milan's FTSE Mib climbed 2.72% to 27,128.99 while Madrid's Ibex 35 put on 1.98% to 8,846.4.

"US stock markets appear to be becoming more comfortable with the sharp increase in yields, finishing higher on the day across the board," said CMC Markets analyst Michael Hewson.

"The increase in yields hasn't been confined to US bond markets, with the UK gilt yield returning to levels last seen at the end of 2018 at 1.48%, while UK two-year gilt yields hit their highest level in over 10 years at 1.35%."

"This week's focus continues to be on tomorrow’s US CPI numbers for January, with most of the market risk being priced towards a reading that could well come at the higher end of expectations. Consequently, this raises the possibility that a downside surprise could prompt a sharp counter reaction in the other direction."

Shares in Norwegian energy firm Equinor gained as the company posted record pre-tax final-quarter profits, driven by a boom in oil and gas prices and said it will raise its dividend and increase share buybacks.

Danish jewellery maker Pandora jumped 8% after the company said it expected sales to improve this year as it reported full-year earnings in line with preliminary results published in December.

Insurer Aegon fell 7% after posting a decline in fourth-quarter earnings, with operating profit down 2% at €470m.

Shares in Dutch payments company Adyen soared by 12% as it reported a 62% rise in second-half net profit, beating market expectations.