London: Major European stock indices closed higher Wednesday, led by the technology sector, as growing expectations of a US interest rate cut boosted global risk appetite. The financial sector also received a boost following the announcement of the British budget.

According to Qatar News Agency, the pan-European Stoxx 600 index rose 1.06 percent to 574.01 points at the close. Germany's DAX index climbed 1 percent, and France's CAC 40 gained 0.9 percent. Technology stocks provided the biggest boost to the benchmark index, rising 2.1 percent as investors grew more confident that the US would cut interest rates in December. Shares of chip equipment maker ASML jumped 5.7 percent, while BESI shares rose 4 percent, and Infineon shares climbed 3.7 percent.

Britain's FTSE 100 index rose 0.85 percent, driven by gains in British bank stocks. Shares in Lloyds Banking Group jumped 3.4 percent, NatWest climbed 2.2 percent, and HSBC gained 1.3 percent, contributing to a 1.6 percent rise in the European banking index. The Spanish index, which includes many listed banks, climbed 1.4 percent, outperforming its regional peers.

Progress in the peace agreement between Russia and Ukraine further boosted confidence across Europe after Ukrainian President Volodymyr Zelenskyy indicated his willingness to move forward with a US-backed framework to end the war. However, uncertainty persisted after President Donald Trump backtracked on the agreement's timeline, supporting oil prices and European defense stocks. Consequently, the European aerospace and defense index jumped 1.35 percent.

Novo Nordisk's stock saw a significant rise of 4.7 percent after the US medical care company released negotiated prices for 15 high-cost drugs, including Wegovi and Ozambique, which analysts noted were largely in line with expectations.