European stock markets closed higher in Wednesday trading as the Stoxx Europe advanced 1.46%, Germany's DAX climbed 1.38%, the FTSE 100 rose 0.99%, France's CAC gained 1.7%, and the Swiss Market Index closed 0.26% higher.

In the UK, the annual consumer price index rose 2.8% in the 12 months to April, down from 3.3% in March. On a monthly basis, CPI rose 0.7% in April, compared with a rise of 1.2% a year earlier, according to the Office for National Statistics.

The ONS said housing and household services made the largest contribution to the lower inflation.

Core CPI, which excludes energy, food, alcohol and tobacco, increased 2.5% in the 12 months to April, down from 3.1% in the 12 months to March.

In corporate news, ASML Chief Executive Officer Christophe Fouquet said that the global semiconductor market will remain "tense" with tight supply for the foreseeable future as demand from artificial intelligence, satellites and robots outpaces industry production, Reuters reported Wednesday.

Fouquet further said that there would likely be sporadic bottlenecks throughout the supply chain of the chip market, which is expected to hit $1.5 trillion by 2030, according to the report.

An ASML spokesperson could not be immediately contacted by MT Newswires.

Shares of the Dutch semiconductor company surged close to 7% in Amsterdam

Shell unit BG International has sold participating interests in three exploration blocks offshore Uruguay to QatarEnergy, which made the announcement Wednesday.

QatarEnergy bought an 18% interest in block OFF-4, with Shell holding 32% and operator APA (APA) accounting for the rest.

Shares of the British oil and gas giant fell 1% in London.

Stellantis and Jaguar Land Rover said Wednesday that they have signed a memorandum of understanding to collaborate on product development in the US.

Financial terms of the deal were not disclosed.

The companies aid that any potential deals as a result of the MoU discussions will be subject to customary closing conditions, which includes signing binding definitive agreements.

Shares of the automaker rose 1.5% in Paris.