European Bourses Rally Midday Ahead of US Federal Reserve Announcement

European bourses tracked higher midday Wednesday as traders awaited the 2 pm ET policy announcement of the US Federal Reserve, and shrugged off Ukraine concerns. Bank and oil issues led gainers.

Market denizens also weighed a pre-bell Wall Street futures market flashing green, but choppy closes overnight on Asian exchanges.

Continental new commercial vehicle sales declined 8.4% in December from November, reported the European Automobile Manufacturers' Association (ACEA), Sales for the whole year 2021 were up 9.6% from 2021, but still down 10.5% from the pre-pandemic year of 2019. In other news, Germany and Russia again reported fresh zeniths for daily COVID-19 infection rates.

The pan-continental Stoxx Europe 600 Index was up 2.0% mid-session.

The Stoxx Europe 600 Technology Index was up 2.7%, and the Stoxx 600 Banks Index was up 3.1%.

The Stoxx Europe Oil and Gas Index was up 3.5%, and the Stoxx Europe Food and Beverage Index was up 0.9%.

The REITE, a European REIT index, was up 1.6%, while the Stoxx Europe 600 Insurance Index was up 2.2%.

On the national market indices, the German DAX was up 2.1%, the FTSE 100 Index in London was up 1.7%, and the CAC 40 in Paris was up 2.1%. Spain's IBEX 35 was up 2.2%.

Yields on benchmark 10-year German bonds were steady, at minus 0.08%.

Front-month Brent crude oil futures were up 0.7% at $87.76 per barrel.

The Euro Stoxx 50 volatility index was down 12.6% to 25.5, but indicating above-average volatility for European stock markets in the next 30 days, a negative signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests expectations for calmer markets.