This is CNBC's live blog covering European markets.
LONDON — European markets closed higher on Wednesday to kick off the final trading week of 2023, as major indexes around the world hovered near record highs.
The pan-European Stoxx 600 index closed up 0.27%. Energy and technology were the leading sectors, gaining around 0.61% and 0.7% respectively.
The European blue chip index traded around the 478.87 mark, not far below the index's record closing high of 483.44 notched in November 2021.
Stock markets in Europe were closed on Monday and Tuesday in observance of Christmas Day and Boxing Day.
Stateside, the S&P 500 is also seeking an all-time high after another winning day on Wall Street on Tuesday. U.S. stocks were little changed Wednesday.
Shares in Asia-Pacific advanced overnight, with Chinese and Hong Kong indexes bouncing on the back of a strong showing for video game stocks. Australia's S&P/ASX 200 hit its highest level since April 2022.
Money Report
Trading volumes are expected to be thin during the last three days of the trading year, with fewer data points on the economic calendar and all major central bank meetings out of the way.
Federal Reserve interest rate cuts may not come until second quarter of 2024, ABP Invest CIO says
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The Federal Reserve could wait to cut interest rates until the second quarter of 2024, Thanos Papasavvas, ABP Invest founder and CIO, told CNBC's "Squawk Box Europe" on Wednesday.
"We don't think that they will rush to cut rates by March, we think it's most likely to happen in May," he said, adding that policymakers may wait to see how economic data points such as the unemployment rate develop.
Rates may also be cut by less than markets are currently expecting next year, Papasavvas said.
"We don't see 150 basis points of rate cuts in twelve months time," he noted.
— Sophie Kiderlin
Investors 'can be a little more optimistic' about outlook for coming months, analyst says
Investors can be more optimistic about the outlook for next year and the Federal Reserve's monetary policy expectations, Shelby McFaddin, investment analyst at Motley Fool Asset Management, told CNBC's "Squawk Box Europe" on Wednesday.
"We've got a bit more confirmation on the strength of consumer activity and health of the consumer through the end of December that's given, I think, investors a little bit more confidence that they can go ahead and just be a little bit more optimistic through the end of the year and about the Fed's intentions," she said.
However, companies looking for equity investments will still be in "a slightly tougher environment," McFaddin said. This is due to interest rates still being higher even when the Fed begins to cut them, and other factors such as the long-term impact of strikes, she explained.
— Sophie Kiderlin
European shares gain momentum
The pan-European Stoxx 600 index climbed 0.4% around 40 minutes into the session, after an uncertain open. Oil and gas stocks added 1% to lead gains as most sectors and major bourses entered positive territory.
The European blue chip index traded around the 479.5 mark, not far below the index's record closing high of 483.44 notched in November 2021.
Biggest movers: Vestas up 6%, Maersk down 4%
Vestas shares climbed more than 6% in early trade after the Danish wind turbine maker won a substantial new order in Australia, set to be delivered in the fourth quarter of 2024.
The momentum spread to other wind firms, with Siemens Energy up 4.8%.
Near the bottom of the Stoxx 600, shares of Danish shipping giant Maersk fell 4%.
- Elliot Smith
A flat open in Europe
The pan-European Stoxx 600 index was little changed in early trade. Tech stocks added 0.6% to lead gains while insurance shares fell 0.4%.
The European blue chip index remained around the 477.6 mark, up 12.41% on the year and not far below the index's record closing high of 483.44 notched in November 2021.
- Elliot Smith
Here are the opening calls
Britain's FTSE 100 is seen around 40 points higher at 7,748, Germany's DAX is set to climb around 70 points to 16,776 and France's CAC 40 is expected to add roughly 40 points to 7,609, according to IG data.
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— Ganesh Rao