LONDON ( The Deal) -- European stock indices rallied on Wednesday, galvanized by news of a potential cease-fire in Ukraine and a strong performance from Asia.
Ukrainian President Petro Poroshenko announced he and Russian President Vladimir Putin had agreed on a "cease-fire process," correcting an earlier statement that a "permanent cease-fire" had been agreed upon. The Kremlin said the two leaders had "coincided significantly" on possible ways to end the crisis, British Broadcasting Corp. reported.
In Moscow, the Micex surged 2.89% to 1,440.08.
In London, the FTSE rose 0.74% to 6,879.59. In Frankfurt the DAX jumped 1.23% to 9,623.54 and in Paris the CAC 40 gained 1.15% to 4,428.85.
European Central Bank policymakers meet to set rates on Thursday and will announce their decision at 1:45 p.m. Frankfurt time. The eurozone's benchmark rate currently stands at 0.15% and recent data has stoked hopes of new monetary stimuli.
Markit Economic purchasing managers' indices for the services sector in August confirmed a picture of economic fragility, with the eurozone, French, German and Italian indices all declining more than expected. In the U.K., the index posted its sharpest month-on-month increase in August since last October.
In Frankfurt, Hugo Boss (BOSSY) shares fell more than 1% as Permira prepared to sell 7.9 million shares, or just over 11% of the company, in a secondary offering handled by Bank of America Merrill Lynch and Citigroup.
Airline Deutsche Lufthansa (DLAKY) was up more than 2% on news it had agreed to forge a cargo joint venture with ANA Holdings covering routes connecting Japan and Europe. ANA closed up 1.1% in Tokyo.