European stock markets are trading higher on Wednesday amid reports of a multi-billion euro rescue plan for failing Italian lender Banca Monte dei Paschi di Sienna (BMDPY) .

Europe's leading Blue-chip index, EURO STOXX 50 gained 34.78 points or 1.12 percent to trade at 3,135.54. UK's benchmark index FTSE 100 gained 64.83 points or 0.96 percent to trade at 6,844.67.

Meanwhile, Germany's benchmark index DAX gained 139.28 points or 1.29 percent to trade at 10,914.60. French benchmark index CAC 40 gained 50.06 points or 1.08 percent to trade at 4,682.00.

On Tuesday, European stock markets closed higher. Europe's leading Blue-chip index, EURO STOXX 50 gained 48.01 points or 1.57 percent to settle at 3,100.76. UK's benchmark index FTSE 100 gained 33.01 points or 0.49 percent to close at 6,779.84.