European stocks moved higher on Wednesday, bouncing back from their sharpest drop in nearly a month, as investors balanced political risks in France with anticipation over Nvidia’s earnings results.
The pan-European STOXX 600 index gained 0.4% by 07:07 GMT. France’s CAC 40 also advanced 0.4%, recovering from a three-week low in the previous session, which was triggered by fears that Prime Minister Francois Bayrou’s government could collapse. Political uncertainty had led to a selloff in French assets earlier this week.
Elsewhere, major indexes in Germany, Italy, and Spain rose between 0.1% and 0.3%.
Investor attention remains firmly on Nvidia, the world’s most valuable company, with its quarterly earnings expected to provide fresh signals for the AI-driven stock market rally. The surge in AI-related stocks has slowed since August, and Nvidia’s results are seen as a key test for momentum.
Meanwhile, a survey showed German consumer sentiment is projected to decline for the third straight month in September, as worries over job security and inflation continue to weigh on households.
Among individual movers, shares of Orsted jumped 3.5%, while Novo Nordisk added 2%, both recovering after underperforming earlier in the week.
