Europe: Stocks Rebound to 2-Week High.

European stocks closed sharply higher on Wednesday, the highest in two weeks, amid fresh optimism over a possible agreement to end the war in Iran. The STOXX 50 closed 2.1% higher at 5,975 and the STOXX 600 gained 1.6% to 621. Energy prices pulled back after US President Trump stated Washington was in the "final stages" of talks with Iran, potentially restoring energy exports through the Straight of Hormuz. Consequently, sovereign yields retreated and improved the credit outlook for Eurozone banks, adding some respite to the sector. Santander, BBVA, and Deutsche Bank added close to 4%. Meanwhile, companies in the AI infrastructure sector were surged as the improvement in sentiment joined the tailwinds from Nvidia earnings overnight. ASML soared 6.7% and Infineon jumped 5.1%.