European stocks edged cautiously higher on Wednesday as global markets keep an eye on geopolitical tensions separately between India and China, and North and South Korea, amid a resurgence of coronavirus cases in Asia and the U.S.

The pan-European Stoxx 600 advanced by 0.2% in early trade, banks adding 9% to lead gains while basic resources fell by 0.5%.

European market sentiment is expected to follow the trend seen in Asia overnight, where stocks traded lower following warnings from the International Monetary Fund (IMF) and on concerns surrounding geopolitical flare-ups between neighboring countries in Asia.

Source : CNBC