- World Bank raises global economic outlook
- German growth estimate misses forecast
- Euro-area's trade surplus expands
- Spain's annual inflation holds steady
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Stoxx 600: 0.58%
An improved outlook for the global economy had provided a boost to European stocks by the midday mark on Wednesday.
The World Bank said the world economy is at a "turning point", raising its forecast for 2014 growth.
The bank expects global gross domestic product (GDP) will grow by 3.2% this year, up from 2.4% in 2013, driven by improvement in developed economies.
The group, however, cautioned that growth remained vulnerable to the impact of the withdrawal of monetary stimulus in the US, saying it could hurt developing countries.
The Federal Reserve started unwinding monthly asset purchases by $10bn to $75bn in December.
The market has been speculating over whether the US central bank will announce a further tapering at its meeting at the end of this month.
Fed official Charles Evans will speak in the US later on, potentially offering clues as to the central bank's next move.
German growth estimate
Germany's economy expanded less than expected last year, the Federal Statistics Office revealed in its first estimate for annual GDP growth.
Europe's biggest economy saw GDP rise 0.4% from 2012, when it increased 0.7%. Economists had forecast growth of 0.5%.
The country's budget deficit was 0.1% of GDP, compared with a forecast for a balanced budget.
"We expect some further growth acceleration in 2014 and annual GDP growth at 2.0% with some upside risks emerging reflecting better global growth," Barclays Research said.
Germany's benchmark 10-year yields were little changed after the report.
Meanwhile in the periphery, Spain's 10-year yields approached the lowest level since 2006 and Italian securities gained as a report showed the euro-area trade surplus increased in November.
The euro-area's trade surplus expanded to €16bn from a revised €14.3bn in October, Eurostat said today.
Separately, Spain's annual inflation rate held at 0.3% last month, the same as in November, the Instituto Nacional de Estadistica in Madrid revealed today.
Hargreaves Lansdown declined after the UK broker said it needs to gather £3.5bn of new assets over the next three years to offset pricing changes.
Banca Monte dei Paschi di Siena SpA gained after saying Chief Executive Officer Fabrizio Viola withdrew his resignation.
Burberry advanced after reporting a 14% increase in revenue in the three months ended December 31st, beating analysts' estimates.
Hennes & Mauritz was up after Europe's second-biggest clothing retailer posted a 10% jump in total sales in December ahead of market forecasts.
The euro fell 0.39% to $1.3626.
Brent crude futures dropped $0.510 to $105.850per barrel, according to data from the ICE.