European Equity Benchmarks Close Higher; Bank of England Says UK Recession Risk Lower

The broad-based major European exchanges closed higher in Wednesday's trading session, as rising mining stocks and automotive companies helped rally the markets.

In economic news, Bank of England Governor Mark Carney said that the Bank has taken actions that have lowered the chances of a recession in Great Britain. Carney told members of Parliament that the risk of recession has declined because of the central bank's "timely, comprehensive and concrete" action to "support and cushion... the economy."

Meanwhile, the annual growth of home prices in the U.K. decelerated in August to 6.9%, from 8.4% in July, according to The Halifax. The bank reported that the average home in the U.K. cost GBP213,930 ($285,100).

"House price growth continued the trend of the past few months in August with a further moderation in both the annual and quarterly rates of increase. There are also signs of a softening in sales activity," said Martin Ellis, Halifax housing economist.

In Germany production in industry in July was down 1.5% from the previous month on a price, seasonally and working day adjusted basis, according to the Federal Statistical Office Destatis.

And in Spain, the number of home foreclosures fell 27.7% in Q2 compared to the same period last year, according to Spain's National Institute of Statistics.

In equities, equipment rental company Ashtead Group and oil and gas giant Royal Dutch Shell led the gainers on the FTSE in London, rising 3.3% and 1.9% respectively. Mining company Antofagasta rose 1.9% while peers Glencore International, Randgold Resources, and Anglo American also helped lift the market, closing up 1.7%, 1.6%, and 1.6% respectively.

In Frankfurt, industrial company ThyssenKrupp and chemical company BASF led the DAX's push into positive territory, rising 2% and 1.7% respectively, followed by automakers Daimler and Volkswagen, which were up 1.4% each. Apparel and footwear company Adidas, and personal products maker Beiersdorf, closed the day 1.3% and 1.2% higher, respectively.

And in Paris, steel and mining giant Arcelormittal led the gainers on the CAC, rising 2.9%, followed by tire maker Michelin and building materials supplier LafargeHolcim, which moved 2.4% and 2.3% higher, respectively. Meanwhile, technology company Nokia, and food retailer Carrefour were up 2% and 1.7% each.

The FTSE gained 0.30%, the DAX climbed 0.62%, and the CAC-40 rose 0.61%.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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