LONDON — European stocks reversed earlier losses to end Wednesday's session broadly higher, as regional shares followed their U.S. counterparts into positive territory.
The pan-European Stoxx 600 was provisionally 0.25% higher after the closing bell, paring losses seen earlier in the session.
The lackluster sentiment seen earlier in Europe followed similar moves in U.S. and Asia Pacific markets overnight, as investors appear increasingly concerned about the lofty valuations of AI-related stocks and tech companies, fearing a bubble is forming.
However, Wall Street's major averages rebounded on Wednesday morning, with some big AI players including Advanced Micro Devices, Oracle and Nvidia posting gains in early New York trade.
Market sentiment also took a knock yesterday when the CEOs of Goldman Sachs and Morgan Stanley warned investors to brace for a drawdown in markets over the next two years.
Earnings continue
It was another busy day for earnings in Europe on Wednesday.
Novo Nordisk shares closed 4.5% lower, having swung between positive and negative territory throughout the morning. The Danish drugmaker posted net profits of 20 billion Danish kroner ($3.1 billion) in its third quarter earnings report, in line with analysts' expected 20.12 billion Danish kroner.
BMW shares rose 6.9%, as the German carmaker's earnings before interest came in at 2.3 billion euros for the third quarter, in line with analysts' expectations.
Meanwhile, Orsted ended the session flat, as the Danish wind energy firm posted a 1.7 billion Danish kroner net loss for the third quarter, which was better than analysts' prediction of a 1.95 billion Danish kroner net loss.
On the central bank front, Sweden's Riksbank announced it was leaving its interest rate unchanged at 1.75%.
— CNBC's Lee Ying Shan and Sarah Min