Draghi's speech in Portugal sank the euro and drove major euro zone bond yields back below zero, slashing effective market borrowing costs, giving a boost to companies worried by sagging growth and driving the pan-European STOXX 600 index almost 2pc higher.

It dipped 0.2pc early compared to Tuesday's close by 0755 GMT, although interest rate sensitive banking stocks outperformed with a 0.60pc rise.

That all followed some minimal gains overnight in Asia after news that China and the United States are rekindling trade talks ahead of a meeting next week between Presidents Donald Trump and Xi Jinping at a G20 summit in Japan.

"Keep in mind that Tuesday's gains were phenomenal and now traders are going to be sitting on their hands and waiting to see what the Federal Reserve does," said David Madden, market analyst at CMC Markets in UK.

"Overall the market mood has been lifted so we're seeing a banks push higher as well."

Concern over impact of the protracted trade war between Washington and Beijing on growth drove European shares about 6pc lower in May, their worst performance in more than two years.

Since then, expectations of policy easing by the ECB and US Federal Reserve has helped the STOXX 600 recoup most of those losses and helped drive a 4pc gain this month. The Fed concludes its June meeting after European markets close.

Corporate newsflow saw Clydesdale and Yorkshire Banking Group gain 4.1pc after the British lender pledged to make an additional 50 million pounds ($62.75 million) in savings from its takeover of rival Virgin Money.

Also keeping markets afloat , sparking hopes that the tensions between the two sides would abate.

The positive trade news lifted chipmakers, with Germany's Siltronic recovering 4pc after falling sharply on Tuesday. Auto stocks gained 0.25pc, supported by gains in Fiat Chrysler Automobiles and Pirelli & C SpA .

The food and beverage, healthcare and utilities sectors posted the biggest declines.

Belgian food retailer Colruyt tumbled 9pc, and was the biggest faller on the STOXX, after the group warned about of a deteriorating economic climate in France and Belgium.

Medical technology supplier Carl Zeiss slid 4pc, after Bank of America Merrill began coverage of its shares with an "underperform" rating.