UPDATE 1-European shares gain on tech, industrials boost as investor appetite improves

European shares edged higher on Wednesday, led by tech and industrial stocks, as improving global investor sentiment and some positive corporate updates helped offset declines in heavyweight financial stocks. The pan-European STOXX 600 gained 0.4% to 577.82 points by 0923 GMT.

European shares edged higher on Wednesday, led by tech and industrial stocks, as improving global investor sentiment and some positive corporate updates helped offset declines in heavyweight financial stocks.

The pan-European STOXX 600 gained 0.4% to 577.82 points by 0923 GMT. Major regional indexes were broadly higher, with ones in Germany and France up 0.4% and 0.3%, respectively.

The one in Spain hit a record high, helped by a 7% rise in Inditex after the Zara owner reported a strong start to winter sales. The stock topped the STOXX 600. Technology stocks were the biggest boost to the index, set to extend gains to a fourth session, following a rebound on Wall Street overnight.

"You've started to see quite strong divergences within the technology space... we're positive on technology for 2026, but it's going to be more about being selective, whereas this year was more of a general rally so far," said Kiran Ganesh, multi-asset strategist at UBS Global Wealth Management. Industrial stocks followed, with defence stocks in the lead, rising 1.5%. Rheinmetall gained 1.9%, while Leonardo added 1.2%.

Russia and the U.S. did not reach a compromise on a possible peace deal to end the war in Ukraine after a five-hour Kremlin meeting between President Vladimir Putin and Donald Trump's top envoys on Wednesday, adding to uncertainty over when a ceasefire would materialize. Airbus shares rose 2.8% after falling 7% in the last two sessions. The planemaker trimmed its delivery target by 30 jets but reaffirmed its 2025 financial guidance.

Conversely, insurers and financial services stocks declined, while banks were little changed. On Wednesday, the focus will be on U.S. private payrolls data for November, that could provide more clarity on the health of the labor market.

Some weak data and dovish comments from some Federal Reserve policymakers have renewed expectations of an interest rate cut in December, among the driving forces of gains in markets last month. "Markets should see that as reassuring because the Fed rate cuts are an important part of the positive narrative for next year... it's going to be the main catalyst," Ganesh said.

Remarks from European Central Bank President Christine Lagarde will be parsed for signals on the interest rate outlook. Among other stocks, German fashion group Hugo Boss fell 10.5% after warning its sales would fall next year as it embarks on a strategic reset.

Sainsbury's slid 3.9% after Qatar's sovereign wealth fund said it planned to reduce its stake in the British supermarket group.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)