European stocks saw a boost on Wednesday, with the STOXX 600 index rising 1.8% following strong earnings from SAP, Europe’s largest software maker.

Additionally, President Donald Trump’s reversal on plans to oust Federal Reserve Chair Jerome Powell eased investor concerns.

Other major regional indexes, including those in Germany, France, Spain, and the UK, gained between 1.9% and 2.7%, according to Reuters.

This week, markets were concerned about the potential threat to the Federal Reserve’s independence due to President Trump’s repeated criticism of Jerome Powell for not cutting rates since his return to office in January.

Meanwhile, SAP’s shares surged by 9.3% after the German software giant exceeded analysts’ first-quarter operating profit expectations. The European technology sector benefited from this, rising 3.3%, leading the sectoral gains across the region.

Trump’s softened stance on China tariffs helped lift market sentiment. He told reporters on Tuesday that he would take a “very nice” approach in negotiations with Beijing.

Additionally, U.S. Treasury Secretary Scott Bessent expressed optimism, suggesting a de-escalation in U.S.-China trade tensions, though he described future talks with China as a “slog” that has yet to begin.

Volvo’s shares dropped 2.2% on Wednesday following a larger-than-expected decline in its first-quarter profit and a reduced outlook for the North American truck market.

On the other hand, BP saw a 3.8% rise after activist hedge fund Elliott increased its stake in the oil giant to over 5%.

Elliott has reportedly urged BP to boost its free cash flow to $20 billion by 2027, according to sources familiar with the matter.

Flash PMI surveys for France, Germany, and the euro zone are expected to be released later today, providing fresh economic data that could influence market sentiment and expectations for growth in the region.