Tech Rally Boosts European Markets Amid Fed Rate Cut Hopes

European equity markets closed higher, led by technology stocks, as expectations for a U.S. Federal Reserve rate cut increased. The STOXX 600 index rose 1.06%, while financials gained support from the UK's budget announcement. Progress on a Russia-Ukraine peace deal further buoyed sentiment across Europe.

European stock markets rose on Wednesday, with technology shares leading the way as hopes for a U.S. Federal Reserve rate cut fueled global risk appetite. Financial stocks also gained after a budget announcement in the UK.

The STOXX 600 index climbed 1.06% to 574.01 points, extending its strong performance into a third consecutive session. Germany and France's indexes also saw gains of roughly 1% and 0.9%, respectively.

Technology stocks surged 2.1% on positive global sentiment regarding a potential December Fed rate cut. UK stocks also benefited, with London's FTSE 100 increasing by 0.85%, supported by a rally in bank shares.

(With inputs from agencies.)