2017.06.0706:24:00UTC+00European Shares Gain Modestly as Banks Take Spotlight amid Santander Deal

European stocks climbed on Wednesday as banks take the center stage amid Santander's move to save Banco Popular from collapse with a €1 ($1.13) accord.

The Stoxx Europe 600 opened at 389.98, up 0.2%, after dropping when the trading session began. The FTSE stood at 7,545.29, up 0.3% ahead of Britain's general election. The DAX 300 and the CAC 40 traded at 12,673.92 and 5,288.19, respectively.

Italy's FTSE MIB was at 20,838, up 0.4%. Also, the Stoxx Europe 600 Bank index gained 1.1%.

Santander trimmed its loss to 0.7% following its move to acquire Banco. Earlier, European regulators said the distressed lender was failing or likely to stumble due to its worsening liquidity condition.

Still, other Spanish banks were escalating. Bankia gained 4.4%. CaixaBank and BBVA rose 2.3% and 2.1%, respectively.