Commodity and bank stocks pushed European markets higher on Wednesday after the OPEC oil cartel reached a long-awaited agreement to curb production in order to support market prices.

Speculation of a deal in the proverbial pipeline drove crude benchmarks as much as 8% higher during the London session, with Brent rising briefly above the $50 threshold, to trade at an intraday high of $50.43.

Price action in the underlying commodity drove exploration and production firms to outperform, with London's commodity-heavy FTSE 100 index and France's CAC 40 the top risers in Europe for the session.

The FTSE 100 rose by 0.8% and was quoted at 6,819.4 shortly ahead of the close, while the CAC 40 gained 0.8% to trade around 4,588.9. London's smaller FTSE 250 index rose 0.1% to 17,545.5 and Germany's DAX was up by 0.3% to 10,655.4.

The Stoxx Europe 600 index was up by 0.6% at the close to settle at 343.0.

European currencies were mixed relative to the U.S. dollar for the session, with the pound largely flat around 1.2477 and the euro down by 0.8% to 1.0566.

Bond markets were deep in the red on Wednesday as investors bet that a rising oil price brings reflation with it in tow, giving rise to the spectre of a further cooling on the idea of loose policy among the continent's central banks.

French bonds were the biggest victim for the session after the fall in the 10-year Tresors pushed yields up by 7 basis points to 0.76%. German yields were up 6 basis points to 0.27% and U.K. yields were up by 5 basis points to 1.28%.

In individual stocks, the biggest gainers for the session were all found in the oil and gas sector.

On London's FTSE 100 BP (BP - Get Report) and Royal Dutch Shell (RDS.A - Get Report) rose by more than 4% for the session, taking first and second place on the leaderboard.

On the FTSE 250 oil and gas services firms such as Amec (AMFW) and Hunting performed well, up by 7% and 9% respectively, while mid-market production stalwarts such as Tullow Oil (TUWLF) and Cairn Energy (CRNCY) both added more than 13% for the session.

In France, the top gainers on the CAC were Technip (TKPPY) and Total (TOT - Get Report) , which jumped 5.5% and 2.4%, respectively. In Germany, utility provider RWE (RWEOY) and banks Commerzbank (CRZBY) and Deutsche Bank (DB - Get Report) were the leaders.

Another key trend that emerged from the day's price action was a stronger banking sector. Bank stocks across the region were broadly positive, with UBS  (UBS - Get Report) and Commerzbank among the top risers as investors moved to price in reduced stress on corporate clients from across the oil and gas sector.

In the U.K., banks were buoyant as well, aided by the outcome of the Bank of England's latest round of stress tests, even if RBS (RBS) did flunk.

Barclays (BCS) , HSBC (HSBC) and Lloyds (LYG) were all up to varying degrees while RBS even pared some of its earlier losses to close just 1.4% lower.