European equities advanced on Wednesday, driven by gains in the renewable energy sector. The Euro Stoxx 50 firmed 30 basis points, with a potential US Supreme Court tariff opinion serving as the main catalyst for the day’s trading activity. Meanwhile, the European Q4 earnings season kicked off in earnest, with luxury goods maker Richemont being the first large-cap company to report.

In the renewable energy space, shares of UBXERNEW rallied 80 basis points, building on Tuesday’s gains. This came as investors remained optimistic about the growth potential of renewables amidst increasing global demand and government support. Upcoming events, including a US offshore wind ruling for Equinor on Wednesday and a UK wind partnership announcement from RWE and KKR, further boosted investor confidence in this sector.

In other news, US Vice President JD Vance and Secretary of State Marco Rubio are set to host the foreign ministers of Denmark and Greenland on Wednesday. This development comes as EU leaders scramble for a deal providing US President Trump with sweeteners like Arctic security investment pledges and access to Greenland’s mineral wealth. Meanwhile, US Congress is moving forward on legislation aimed at stopping a military takeover of NATO territories.

In the banking sector, shares stabilized after an initial decline, with UBS analysts flagging more cautious client feedback following last year’s sector strength. While external risk factors like geopolitics remained a focus for investors, sector crowding has gradually decreased from its December peak.

Overall, European equities appeared to be gaining ground on Wednesday, driven by optimism in the renewable energy sector and developments related to Greenland and the Arctic region. As earnings season progresses and geopolitical events continue to shape market sentiment, investors will likely remain focused on these themes in the days ahead.