Brussels, March 25 (QNA) - European stocks closed higher on Wednesday, amid expectations of a de-escalation in the Middle East conflict and concerns about the war's long-term economic damage.

The pan-European Stoxx 600 index rose 1.4 percent to 587.49 points, marking its third consecutive day of gains after briefly falling 10 percent from its record highs earlier in the week.

Major regional stock exchanges also rose by more than one percent, with the UK's FTSE MIB leading the gains with a 1.4 percent increase.

All major sectors posted gains, with mining stocks rising 2.4 percent and banks 1.8 percent.

Travel and leisure stocks, which had been hit earlier in March by rising energy prices, climbed 1.4 percent, boosted by gains in airline stocks such as Lufthansa and Air France, which each rose 2.3 percent.

Energy stocks rose 1.1 percent, and Morgan Stanley revealed it had become more optimistic about the sector. (QNA)