European stock markets showed upbeat moves on Wednesday, recouping from the prior day’s steep losses, which came after inconclusive election results in Italy stoked fears of political instability in the euro zone.
The Stoxx Europe 600 index XX:SXXP -0.24% picked up 0.4% to 285.61, climbing back from a 1.3% loss on Tuesday.
Shares of Bouygues SA FR:EN +6.47% rallied 7.2%, after the construction company’s 2012 profit beat expectations.
Pointing in the other direction, shares of Anheuser-Busch InBev NV BE:ABI -0.29% BUD -0.13% dropped 0.9%, as the brewer reported a drop in fourth-quarter profit.
For the broader European stock markets, Wednesday’s gains came on the back of a massive selloff the prior day. Italian stocks sank almost 5% after murky election results fueled worries of a fragmented government. A split leadership could make it hard for lawmakers to implement reforms and continue the nation’s austerity drive.
The FTSE MIB index XX:FTSEMIB -0.39% gained 0.2% to 15,588.27 on Wednesday.
Investors also took inspiration from Asia and the U.S., where bourses gained after U.S. Federal Reserve Chairman Ben Bernanke defended the central bank’s quantitative-easing policy. The chairman said the benefits of asset purchases were clear in the current economic environment and he said the risks were manageable
Back in Europe, France’s CAC 40 index FR:PX1 -0.05% gained 0.4% to 3,636.59. Shares of European Aeronautic Defence & Space Co. FR:EAD +5.48% jumped 5.7%, after the company reported double-digit revenue and profit growth in 2012 due to stronger business activity in its Airbus division. See: EADS ’12 net beats estimates; dividend up
Germany’s DAX 30 index DX:DAX -0.40% added 0.2% to 7,610.49, with shares of software major SAP AG DE:SAP +0.02% 0.9% higher.
And in the U.K., shares of Weir Group PLC UK:WEIR +1.20% put on 2%. The engineering firm posted a rise in pretax profit and said that it expects to deliver low-single-digit revenue growth. See: Weir Group year pretax net up; sees revenue growth
The FTSE 100 index UK:UKX +0.04% traded 0.4% higher at 6,292.04.
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