European stocks climbed, rebounding from a three-month low, as U.S. President Barack Obama expressed confidence that he will strike a deal with Congress on a new budget.

Before Obama left for Asia, he met with senior Democrats and Republicans for talks to avoid a $607 billion-package of automatic tax increases and spending cuts that if allowed to come into force would push the country into a recession next year. Congress returns from its Thanksgiving holiday on Nov. 26.

HSBC Holdings Plc added 1.8 percent after Europe’s largest lender by market value said it has held talks to sell its stake in Ping An Insurance (Group) Co.

BP Plc gained 2.8 percent following a report that the oil company plans a 3.7 billion- pound ($5.9 billion) buyback.

FTSE 100 5,662.23 +56.64 +1.01%

CAC 40 3,386.84 +45.32 +1.36%

DAX 7,043.91 +93.38 +1.34%