European stock markets were tracking sharply higher in Wednesday trading as investors monitored the Middle East conflict amid reports of a possible truce.

The Stoxx Europe 600 increased 1.1%, Germany's DAX was ahead 1.4%, the FTSE 100 was rising 1.3%, France's CAC was up 1.2%, and the Swiss Market Index was 1.5% higher.

In the UK, the Consumer Prices Index rose 3.0% in February on an annual basis, which was unchanged from January, according to the Office for National Statistics. On a monthly basis, CPI rose 0.4% in February, which was unchanged from a year earlier.

Bank stocks rallied in Wednesday trading as Deutsche Bank and Commerzbank were moving 3% and 2.7% higher, respectively, on the DAX. Standard Chartered and HSBC and were up 2.7% and 2.5%, respectively, in London, followed by Barclays, which was up 2.3%. And Societe Generale and BNP Paribas were moving 2.3% and 1.6% higher, respectively, in Paris.

In corporate news, Ryanair and Lufthansa have paused new jet fuel hedging after prices surged following the Iran conflict, as European airlines bet costs would ease later this year, the Financial Times reported Wednesday.

Ryanair Chief Executive Michael O'Leary told the publication that the carrier was unlikely to lock in additional fuel contracts for the next three months, adding the airline would prefer to hedge again if prices move below $70 per barrel.

Several European carriers typically hedge fuel on a rolling basis and have already secured about 80% of their fuel needs for this year at pre-crisis rates, the report said.

Lufthansa also said it has paused new hedging since the conflict began, while noting most of its 2026 fuel exposure had already been locked in earlier at lower prices, according to the report.

Shares of Ryanair were up 2% in Dublin, while Lufthansa was trending 1% lower in Frankfurt.

Barclays is pulling back on asset-based lending to smaller borrowers following the collapses of Market Financial Solutions and Tricolor Holdings, Bloomberg reported Wednesday, citing people with knowledge of the matter.

The bank is shifting its focus to securitizations and loans for larger corporate clients, the people reportedly said.

Barclays didn't immediately reply to a request for comment from MT Newswires.

Shares of the British bank were rising 2.1% in London.

TotalEnergies and Czech energy company Energeticky a prumyslovy holding have received European Commission approval to form a joint venture, the regulator said Wednesday.

The transaction mainly relates to the flexible power generation market across Italy, the Netherlands, Ireland, the UK, and France.

The European Commission said the deal would not raise competition concerns, citing the companies' limited market positions and the transaction's limited impact on the market structure.

Shares of TotalEnergies were off 0.4% in Paris.

HSBC has named Jack Yang as its finance chief for Asia and the Middle East, news outlets reported Wednesday. Yang will succeed Ming Lau, who transferred to Manulife Financial (MFC), Bloomberg reported.

HSBC Holdings did not immediately respond to MT Newswires' request for a comment.

Shares of HSBC were moving 2.7% higher in London.