European stocks climbed as U.K. shares rallied after a budget presentation and Swedish equities jumped after a rate cut.

The Stoxx Europe 600 Index added 0.3 percent to 398.65 at the close of trading, erasing earlier losses of as much as 0.4 percent. Investors are also awaiting a Federal Reserve policy decision for cues on the timing of a rate increase.

The U.K.’s FTSE 100 Index climbed 1.6 percent as Chancellor of the Exchequer George Osborne raised forecasts on Britain economic growth for 2015 and 2016. The OMX Stockholm 30 Index jumped 1.7 percent to a record as Sweden’s central bank cut its key interest rate and expanded a quantitative-easing program.

Carmakers posted the worst drop among 19 industry groups, with Bayerische Motoren Werke AG falling 4.2 percent after forecasting slower earnings growth in 2015. The gauge of auto companies fell for a second day, after rising to a record on Monday.

Source : Bloomberg