Europe bounces back

After tanking on Tuesday, Europe's stock markets are rallying on Wednesday.

The FTSE 100 just closed up 1.62% in London, while Germany's DAX is up 0.42%, France's CAC 40 is up 0.16%, and the Euro Stoxx 50 is up 0.11%.

In the driving seat, once again, is Volkswagen. After dragging shares down yesterday, a rebound for VW has helped boost confidence today.

But markets did fall back from earlier highs after VW's CEO quit, a move that was announced half an hour before trade closed in London. Europe is still just in the black this afternoon.

British Airways' owner IAG is the day's biggest riser on the FTSE, up 4.76% after a price upgrade from Morgan Stanley.