European stocks advance as recovery hopes persist despite geopolitical tensions

European stocks gained on Wednesday as optimism persists over a potential economic recovery, while markets also kept an eye on geopolitical tensions.

The pan-European Stoxx 600 climbed by 0.9% by early afternoon, with construction stocks adding 1.3% to lead gains as almost all sectors and major bourses advanced into positive territory.

European market sentiment is bucking the trend seen in Asia overnight, where stocks traded lower following warnings from the International Monetary Fund (IMF) and on concerns surrounding geopolitical flare-ups between neighboring countries in Asia.