European Stocks Surge Amid Trade Talk Hopes

European shares hit a four-week high as optimism grows over potential US-EU trade talks. Banks led gains, notably UniCredit and Societe Generale. Meanwhile, Trump plans new tariffs on copper, semiconductors, and pharmaceuticals. Investors anticipate positive negotiation outcomes by the extended August 1 deadline.

European markets saw a notable uplift with shares closing at their highest in four weeks, largely driven by banking stocks as hopes swell for meaningful advancements in trade negotiations between the US and the European Union.

The pan-European STOXX 600 index climbed 0.8%, reaching levels not seen since mid-June. Italian bank-heavy indices surged, with UniCredit leading the charge, despite facing German opposition over its Commerzbank ambitions. A broader bank index rose 2.7% while defense stocks also saw a record high.

In trade developments, the EU aims for an imminent outline agreement with the US, amid President Trump's looming tariff announcements. Notably, copper rates and potential industry-specific levies are on the horizon. Market reactions were mixed, with key pharmaceutical shares dropping, while eyewear company EssilorLuxottica gained from Meta Platforms' investment revelation.

(With inputs from agencies.)