EU STOCKS extended gains to a second day

European stock markets rose for a second straight day on Wednesday, fueled by a strong session in the U.S. and better-than-expected German consumer-confidence data.

The Stoxx Europe 600 index  rallied 1.7% to close at 284.54, marking the biggest one-day percentage gain since April.

Among notable movers in the pan-European index, shares of Direct Line Insurance Group PLC  climbed 3.8% after the U.K. firm announced plans to cut costs by 130 million pounds ($200 million) and cut about 2,000 jobs.

Spanish banks gained after Citigroup lifted the country’s banking sector to neutral. Bankinter SA, which was upgraded to buy from sell, added 7.3%, and Banco Santander SA, which was lifted to neutral from sell, gained 3.7%.

The IBEX 35 index  jumped 2.8% to 7,823.00.

In Germany, the DAX 30 index  climbed 1.7% to 7,940.99. Data showed German consumers are optimistic about the summer, with the GfK consumer-climate study forecasting a value of 6.8 points in July, up from 6.5 points in June.

France’s CAC 40 index  gained 2.1% to 3,726.04.

Shares of Unibail-Rodamco SE  added 3.4% after UBS lifted the property-investment firm to buy from neutral.

The U.K.’s FTSE 100 index  rose 1% to 6,165.48.

Shares of Aberdeen Asset Management PLC  jumped 4.8% after HSBC lifted the investment firm to overweight from neutral.

Outside the major indexes, shares of Afren PLC  jumped 7.3% and Lekoil Ltd.  surged 9.6% after the two firms said their Ogo well offshore Nigeria discovered a significant light oil field.

Shares of Etablissementen Franz Colruyt NV  jumped 8.3% in Brussels after the discount food retailer late Tuesday reported a 6.2% rise in full-year operating profit.

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