European stocks closed higher, recording the best performance in almost 6 weeks, by Reuters

(Archyde.com) – European stocks rose on Wednesday, as banks extended gains and supported the optimistic results recorded by the US company Nike for the troubled retail sector in Europe, and the improvement in the economic outlook for the region also boosted sentiment.

The European index closed up 1.7 percent, and shares of consumer accessories sector companies, such as Adidas (ETR:) and Puma, led the gains, following their American counterpart Nike recorded quarterly revenues and profits that exceeded expectations.

Adidas and Puma shares rose 6.8 and 9.5 percent, respectively, while J. D Sports listed on the London Stock Exchange (LON:) rose 6.1 percent, raising the retail index.

Rising borrowing costs and the cost of living have disrupted the European retail sector this year, bringing the sector’s index close to recording its worst annual performance since 2008.

The German index rose 1.5 percent.

This follows data released on Tuesday that showed a slight rise in consumer confidence in the eurozone in December.

The index fell to its lowest level since January, reflecting reduced anxiety among investors.

The pan-European STOXX 600 has fallen 2 percent so far in December, following two straight months of gains, fueled by hopes that slowing inflation will allow the Federal Reserve and other central banks to slow the pace of interest rate hikes.

Banking stocks rose 1.6 percent, but were still on track for an annual loss, as gains from higher interest rates were outweighed by fears of a recession.

(Prepared by Amira Zahran for the Arabic Bulletin – Edited by Ali Khafaji)