European Shares Surge Amid Optimistic Trade Talks

European stocks rose over 1%, driven by the automotive sector, following U.S. President Trump's optimism for an EU trade deal post-Japan agreement. Key indexes like STOXX 600 and FTSE 100 hit new highs, while automotive shares soared. Prospects of improved EU-U.S. trade relations bolstered investor confidence.

European stocks soared above 1% on Wednesday, buoyed by confidence in the automotive sector and fresh optimism from U.S. President Donald Trump's remarks about a potential trade deal with the European Union. The lift followed after the U.S. secured a trade agreement with Japan.

The pan-European STOXX 600 index rose 1.1% to 550.14 points in early trading, snapping a three-day losing streak. Britain's FTSE 100 extended its rally to a fifth session, achieving a new record high with a 0.5% gain. Other major indexes across the continent, such as France's CAC 40, also experienced significant gains, with the French index up by 1.3%.

The automotive industry led the charge, with European car stocks climbing 3.6%, paralleling the performance of their Asian counterparts. Key players like Mercedes-Benz, Volkswagen, and Porsche saw substantial gains ranging from 5.1% to 7.4%.

(With inputs from agencies.)