European stock markets closed higher on wednesday:uropean Stoxx Europe 600 index rose 0.46% to 637.09 points.

According to Anadolu Agency, the UK's FTSE 100 gained 0.28% to 10,688.47, Germany's DAX climbed 0.53% to 25,537.75, France's CAC 40 advanced 0.62% to 8,140.59, and Italy's FTSE MIB increased 0.80% to 51,969.12. Spain's IBEX 35 added 0.41% to close at 19,635.80. The euro traded at $1.153 as of 1650GMT, down 0.08%.

Markets priced in a 95% probability that the Fed would raise its policy rate by 25 basis points to a range of 3.75%-4%, following US employment and inflation data. Analysts noted that uncertainty over the policy outlook under Fed Chair Kevin Warsh has unsettled bond investors. Markets are also keenly watching his post-meeting news conference for potential tensions with President Donald Trump, who has repeatedly called for lower rates.

Brent crude fell 3.3% to $105.21 per barrel after US Energy Secretary Chris Wright indicated that a critical Saudi oil pipeline could be restored quickly. The yield on the 10-year US Treasury note eased to 4.99% after reaching 5.04% Tuesday, its highest level since the 2007 financial crisis. Germany's 10-year bond yield stood at around 3.53%.

Technology stocks recovered from losses earlier in the week after Bank of America raised its forecast for the global semiconductor market's size in 2030 to $3.2 trillion. Shares of Infineon, Hochtief, and Siemens Energy gained as much as 3.1%. However, automotive shares came under pressure after Berenberg Bank warned that weak Chinese demand, geopolitical risks, intensifying competition, and excess capacity were impacting the sector's profitability.