European benchmarks surged on Wednesday as optimism renewed among investors and the Trump-trade came back on.
Concerns eased following a more conciliatory tone from President Trump in his first address to Congress; the collective appetite for risk returned, with Trump requesting support for a $1 trillion boost to infrastructure spending in the U.S.
Both indices in London surged to new record highs during the session. The FTSE 100 gained 1.6%, to close at 7,382, while the middle-market FTSE 250 jumped 1.13%, to close at 18,983.
Frankfurt's DAX index hit a two-year high when it rose 1.97% before coming to rest at 12,067.
This is while the CAC 40 index in Paris jumped more than 2.1%, to close at 4,960, making it the top riser among major European benchmarks.
The Stoxx Europe 600 index, currently the broadest measure of European stocks, rose by 1.4%, to 375.4 ahead of the close.
CRH takes 51% of sales from America, according to Factset estimates, and reported a 69% increase in full-year profit before tax Wednesday. Meanwhile, Ashtead, a construction equipment hire firm, takes 74% of its top line from the U.S.
Deutsche and Commerzbank were beneficiaries of a return to a risk-on stance among investors, who had shunned the banking sector on and off over the last week.
Automakers were buoyant after Donald Trump called for a constructive approach in Congress toward dealing with the problem of illegal migration, but stopped short of speaking about border taxes, leading to hopes among some investors that the signature policy might have been quietly kicked to the side.
Many European auto firms count the U.S. as their largest market and so Trump's pledge to implement a border tax and push for costly changes to supply chains had left the industry on edge.
In France, ArcelorMittal (MT - Get Report) was the top riser on the CAC 40 after gaining more than 5%. The stock fell heavily on Tuesday but was picked up in Wednesday's session by an improved appetite for risk. Societe Generale (SCGLY) and BNP Paribas (BNPQY) followed closely behind, with a 5.1% gain and a 4.5% gain respectively.