European Markets Rise Amid Rate Cut Optimism and Peace Talk Progress

European shares edged higher on Wednesday, driven by expectations of U.S. rate cuts and positive movement in Ukraine peace talks. The STOXX 600 rose 0.2% as investors awaited the UK budget. Major indexes in Germany and France also saw gains, with investor sentiment bolstered globally.

European shares advanced slightly on Wednesday, buoyed by growing optimism for U.S. interest rate cuts and progress in Ukraine peace negotiations. The pan-European STOXX 600 index inched up by 0.2% to reach 569.19 points, after recording its most substantial daily increase in two weeks on Tuesday.

Main European markets, including Germany and France, experienced modest growth, up by 0.1% and 0.2% respectively. London's FTSE 100 climbed 0.1% ahead of a crucial autumn budget, where Finance Minister Rachel Reeves is anticipated to introduce significant tax hikes.

Investor sentiment remained strong as speculation heightened over a possible U.S. Federal Reserve rate cut in December. Concurrently, the prospect of a Russia-Ukraine peace agreement added to the positive outlook, despite some ongoing uncertainties influencing energy and defense stocks.

(With inputs from agencies.)