European stocks finished higher Tuesday, as analysts said worries were abating over whether the Trump administration will be able to push through pro-growth reforms in the world's largest economy. The pan-European benchmark slid on Monday along with equities worldwide after a Republican overhaul of the U.S. health care system fizzled, sparking worries about President Donald Trump's other business-friendly plans.

U.S. stocks posted broad-based gains Tuesday, with the Dow Jones Industrial Average snapping its eight-day losing streak, as investors cheered better-than-expected economic data. Attracting the most attention was a reading of consumer confidence in March, which soared to the highest level in more than 16 years. Separately, U.S. house prices roared to their highest in nearly three years as demand remains brisk.

Investors in Asian equities regained some of their risk appetite Wednesday following strong gains in the U.S., where better-than-expected economic data sparked optimism. In currencies, the pound continued to plunge against the dollar after U.K. Prime Minister Theresa May signed the formal letter that will trigger the nation's official separation from the economic bloc when it is delivered to European Council President Donald Tusk later Wednesday.