European equities advanced on Wednesday as strong corporate earnings and dealmaking lifted sentiment. Iberdrola acquired an 80% stake in Finnish peer Caruna for 2 billion euros, while Banco Santander reported a record first-half net profit of 7.33 billion euros, up 15%. Moody's placed UniCredit on review for a possible ratings upgrade following its bid for Commerzbank.
Major European bourses closed higher, with London gaining 1.18%, Paris 0.87%, Madrid 0.97%, Milan 0.78% and Frankfurt 0.29%. In Milan, Saipem rose 2.14% after securing a $260 million offshore drilling contract in Ivory Coast, and TISG rebounded 15%. In Lisbon, CTT shares climbed 1.59% after receiving a non-binding expression of interest from Cajamar regarding Banco CTT, while Galp hit its highest level since May.
Energy and commodities also rallied. Brent crude gained 1.3% to $92.24 a barrel and gold futures rose 1.4% to $4,133. In Japan, the Nikkei 225 added 1.9% as June trade data showed year-on-year export and import growth.