European stock markets closed Wednesday's session higher, driven by expectations that the U.S. Federal Reserve will cut the benchmark interest rate.

European stock markets had a positive session, with the pan-European Stoxx 600 rising by almost 1.1%, amid expectations that the U.S. Federal Reserve will cut the benchmark interest rate in December. This trend was supported by statements from the president of the New York Fed, John Williams, who mentioned that there is room for monetary easing.

In the United Kingdom, Finance Minister Rachel Reeves presented the autumn budget, anticipating tax increases to cover the fiscal deficit. Shares of British banks fluctuated, with Barclays and Lloyds recording gains. Additionally, the British pound appreciated by 0.5% against the dollar.

European investors also monitored discussions about a possible peace agreement for Ukraine, and shares of defense companies rose. Novo Nordisk's stocks advanced significantly after the announcement regarding reduced prices for medications.