Europe's leading stock markets nudged higher on Wednesday in cautious trading, as market players digested the latest batch of company results and awaited key US economic data later this week.
London's FTSE 100 index rose 0.68 percent to 5640.57 points, the Paris CAC 40 index gained 0.86 percent and the Frankfurt Dax ended 0.86 percent up.
The Stoxx 50 index of top eurozone shares rose by 0.95 percent.
On other European stock markets, Milan jumped 1.27 percent, Madrid rose 1.07 percent and Zurich ended barely in positive territory with a 0.08-percent rise.
"European markets were largely subdued on Wednesday with many investors sitting on the sidelines and waiting for macroeconomic news to help dictate their next moves," City Index analyst Joshua Raymond said.
"You get the feeling that the markets are on a bit of a crossroads right now. Investors ... are largely sitting on the sidelines."
Analysts said the markets were waiting for US figures on trade and weekly jobless claims that are scheduled to be released on Thursday.
"Fundamentally, we have an improving economy going for the market," said Wells Fargo Advisors chief market strategist Al Goldman, referring to the US.
"We believe the market will work higher but probably in a stair-step fashion unless we get some really good economic news," he said.
"But, we remain in a bull market and bull markets surprise on the upside as this one has done during the recent pullback and subsequent rally back."
On Wall Street, the Dow Jones Industrial Average was slightly up by 0.24 percent and the tech-heavy Nasdaq rose 0.83 percent in afternoon trading.
Briefing.com's analyst Patrick O'Hare said financials, retailers, and small-capitalized stocks continued to lead in trading, while energy companies lagged behind despite general strength in crude oil prices.
"The market is testing the highs of the bull market run over the past year," he said, referring to the first anniversary on Tuesday of the US stock market's 12-year low amid the financial crisis stemming from a home mortgage meltdown.
Since then, the blue-chip Dow index has rallied more than 60 percent.
Investors in Europe also continued to focus on Greece and the risk that its public debt problems might spread to Portugal and other European nations.
In London, traders also absorbed an official announcement that the British government will unveil its annual budget on March 24, a step widely taken to mean the country will go to the polls in early May.
In Germany, shares in power giant E.ON gained 1.56 percent to 27.30 euros after reporting a 2009 net profit of 5.33 billion euros (7.25 billion dollars).
But a net profit plunge for France's JC Decaux, the biggest outdoor advertising group in Europe and Asia, helped drag shares down.
JC Decaux shares ended the day 1.37 percent lower at 19.47 euros.
In earlier Asian deals on Wednesday, Tokyo's Nikkei-225 index dropped a marginal 0.04 percent to end at 10,563.92 points.
Investors were cautious ahead of consumer price data from key export destination China due on Thursday that could stoke concerns about further steps by Beijing to cool its fast-growing economy, dealers said.
Shares in troubled automaker Toyota closed down 1.4 percent after news of an another accelerator-related incident in the United States.
