Investors were cheered by upbeat earnings from big names in tech.

German software firm SAP reported last year's operating profit beat expectations.

It also unveiled a $2.2 billion restructuring program for this year.

That as it tries to focus more on growth in its artificial intelligence-driven business areas.

Shares flew up over 7% in early trades.

ASML, which builds chip-making equipment and is Europe's largest tech firm by market value, also posted strong earnings.

Net profit rose 9% to $2.2 billion in the fourth quarter - well above analyst forecasts.

Shares in the Dutch giant rose more than 6% after the update.

The pan-European STOXX 600 index was up close to 1% in opening trade as a result.

Shares in Chinese-exposed luxury firms like LVMH were also up on Wednesday.

Investors reacted after China's central bank said it would cut the amount of cash banks must hold as reserves from early February.

It's all part of policymakers' efforts to shore up the country's weak post-health crisis economic recovery.

Unilever was one of Wednesday's more underwhelming performers, with its stock opening lower.

Data showed the maker of Ben & Jerry's ice cream struggled to defend market share in the fourth quarter.

Higher prices for its goods pushed shoppers towards cheaper private label brands from retailers like Tesco and Walmart.