European Shares Rise As Global Sentiment Improves; Gold Sees Modest Rebound

European equities advanced on Wednesday as global market sentiment continued to improve, supported by easing bond yields, stabilizing U.S. futures, and renewed risk-taking across major asset classes.

The STOXX 600 climbed steadily throughout the session, with financials, industrials, and consumer discretionary stocks among the top performers. Investors appeared more comfortable rotating back into cyclical sectors, encouraged by signs that last week’s Treasury volatility is fading.

German and French indices posted strong gains, while the FTSE 100 benefited from a softer U.S. dollar and improving commodity prices. European bond markets also strengthened, with yields drifting lower as rate-cut expectations for 2026 regained traction.

Gold prices saw a modest rebound after declining earlier in the week. Lower Treasury yields helped underpin demand, though risk appetite across equities limited the magnitude of the bounce. The metal continues to trade within a broad consolidation zone, with buyers showing resilience near recent support levels.

In FX, the euro held firm as improving sentiment reduced safe-haven demand for the U.S. dollar. The British pound also strengthened amid expectations of a more stable UK growth outlook heading into the new year.

Asian markets added to the positive tone overnight, with gains across Japan, South Korea, and Australia, supported by stronger tech shares and a stabilization in global bond markets. Commodity currencies found mild support as risk appetite improved and energy prices steadied.

With volatility cooling and equities recovering, investors are shifting focus to the next major catalysts: U.S. labor-market indicators later this week and key inflation data that will help shape central-bank policy expectations as 2026 approaches.