European Stocks Rebound Amid Political Uncertainty in France

European stocks showed resilience on Wednesday, rebounding from the month's steepest decline as market participants assessed political turbulence in France and looked ahead to Nvidia's earnings for market direction.

The STOXX 600 index, a broad gauge of European shares, increased by 0.4% by early trading hours. France's CAC 40 also climbed 0.4%, recovering from a significant slump triggered by fears of a governmental collapse under Prime Minister Francois Bayrou. Other European indices, including those in Germany, Italy, and Spain, recorded modest gains ranging from 0.1% to 0.3%.

As Nvidia's earnings are anticipated to provide fresh insights into the AI-driven stock rally, a German consumer survey indicated a third consecutive decline in sentiment due to job security and inflation concerns. Meanwhile, Orsted and Novo Nordisk saw their shares rise by 3.5% and 2%, respectively, despite recent underperformance.

(With inputs from agencies.)