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Europe Markets: European stocks get a lift from German banks

European stocks edged higher Wednesday, as a report of merger talks between Deutsche Bank AG and Commerzbank AG helped lift shares of the German banking heavyweights.

The Stoxx Europe 600 index SXXP, +0.35% turned up 0.3% to 345.59, led by the financial group SXFR, +0.41% , as investors waited for a fresh reading on eurozone inflation.

The pan-European index on Tuesday rose 0.5%, aided by gains for exporters that came as the euro weakened. The benchmark is on track to wrap up the month of August with a gain of 1.2%, which would mark the second consecutive monthly rise.

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