Global risk appetite improved as Asia-Pacific gains and US futures pointed to the possibility of a December rate cut, fueling a broader market rally."

European stocks opened higher as traders priced in a December 25 basis point Fed rate cut, buoyed by bets of a path toward accommodation after remarks from a New York Fed official.

In company news, BHP Group rose about 1% after confirming preliminary discussions with Anglo American but noting a merger is no longer on the table, while Anglo American gained around 0.5%.

Julius Baer fell nearly 4% after booking an additional 149 million Swiss francs in loan-loss provisions, weighing on its shares.

Market backdrop included a pullback in AI-linked tech stock valuations that helped drive recent volatility and shifted market sentiment.

In the U.K., eyes were on the Autumn Budget, with Finance Minister Reeves anticipated to outline tax increases to balance the books while preserving welfare spending.

Germany’s business climate cooled in November, with the Ifo index slipping to 88.1 as expectations softened and current conditions nudged higher.

Siemens Energy led gains among major stocks, supported by a broader uplift in Industrials and tech names, while other notable movers included Infineon, BMW, and Daimler Truck.

UK’s growth outlook remained sluggish amid fiscal focus, with Reeves aiming to hit borrowing targets to prevent a bond market squeeze.

Defence stocks came under pressure as Ukraine peace progress weighed on sector sentiment, while Bayer surged on positive heart-attack risk-reducing drug news.

Oil prices steadied as markets weighed a potential Russia-Ukraine peace framework, helping limit recent supply concerns.