European stock markets rose on Wednesday, while Wall Street extended gains as investors were encouraged by solid earnings reports from Coca-Cola and other consumer-oriented corporations.

After falling earlier this week, Wall Street recovered on Tuesday, and traders maintained the pace, boosting mood in London and throughout the continent.

“A strong comeback in US markets has spilled over into Europe,” said Joshua Mahony, senior market analyst at IG trading firm. analyst Patrick O’Hare added that comments from Coca-Cola and other firms that rely on consumption “helped temper some of the slowdown concerns that were purportedly driving Monday’s selling.”

All three major US indices rose, with the S&P 500 rising 0.8 percent after European bourses gained more than 1%.

“This batch of earnings spanned many sectors and was very outstanding,” said Edward Moya, a market analyst at the online brokerage Oanda.

“The remaining second-quarter numbers appear to be solid as well, demonstrating that peak earnings growth forecasts were not disappointed.”

According to ThinkMarkets analyst Fawad Razaqzada, “the crucial question is whether this is the beginning of a rally to new highs, or will investors see this as an opportunity to exit” and lock in profits.

Oil prices rose in commodities trade, rebounding from steep losses earlier in the week following an agreement by OPEC+ producers to increase supply.

The euro rose against the dollar but fell against the pound ahead of the European Central Bank’s monetary policy decision on Thursday.

BK Asset Management’s Kathy Lien warned that if the bank’s tone surprises, the euro might soar on Thursday.

“Everyone expects the ECB to remain dovish, especially after tweaking their inflation target,” Lien wrote. “However, the relatively mild drops in EUR/USD this month imply that sellers may be weary.”

“This poses a risk for anyone anticipating” additional losses in the euro against the dollar, she said, adding that the European currency may rise if ECB Chief Christine Lagarde hints that asset purchases will be reduced sooner than planned.