European Stocks Close Higher On Optimism About U.S. - EU Trade Talks

(RTTNews) - European stocks closed higher on Wednesday amid slightly easing concerns about a trade war after EU trade chief said talks with the U.S. were advancing in the right direction.

US Trade Representative Jamieson Greer and EU Trade Commissioner Maros Sefcovic's meeting following President Donald Trump's steel and aluminum tariff hike, is reportedly showing signs of constructive progress.

Investors also digested regional economic data and some corporate earnings updates, and looked ahead to the European Central Bank's monetary policy announcement on Thursday.

The ECB is widely expected to reduce interest rate by 25 basis points.

The pan European Stoxx 600 climbed 0.51%. The U.K.'s FTSE 100 gained 0.19%, Germany's DAX ended 0.71% up, and France's CAC 40 advanced 0.58%. Switzerland's SMI closed 0.48% up.

Among other markets in Europe, Belgium, Denmark, Finland, Greece, Iceland, Netherlands, Norway, Poland, Russia, Sweden and Turkiye closed higher.

Austria, Czech Republic, Ireland, Portugal and Spain ended weak.

In the German market, Infineon Technologies rallied nearly 4.5%. Deutsche Post gained about 2.3%. Symrise, Beiersdorf, Siemens, Brenntag, Qiagen, E.ON, Bayer, Heidelberg Materials, Merck and Henkel gained 1 to 2%.

Deutsche Bank, Puma, Adidas, Sartorius, Zalando, Mercedes-Benz and Rheinmetall closed weak.

In the French market, STMicroElectronics soared nearly 12% after the company's chief executive Jean-Marc Chery said that the French-Italian chipmaker has seen signs of an upcycle that will boost its results in the coming quarters.

Speaking at an event hosted by BNP Paribas, the CEO said the company would deliver at least the mid-point of its second-quarter guidance. It had forecast revenue of $2.71 billion at mid-point for the quarter in its last earnings report.

Pernod Ricard, Kering, Teleperformance and L'Oreal gained 2.3 to 3.2%. Airbus Group shares climbed more than 2% after Bloomberg News reported that China is considering placing an order for hundreds of Airbus SE aircraft as soon as next month.

Saint Gobain, Dassault Systemes, Schneider Electric, Air Liquide, ArcelorMittal and LVMH also closed with strong gains.

Carrefour closed down by about 2.5%. Thales, Michelin, TotalEnergies, Unibail Rodamco, Societe Generale and Renault lost 1 to 1.6%.

In the UK market, Babcock International climbed 4.3%. Games Workshop and Antofagasta gained about 3.5% and 3.2%, respectively.

WH Smith moved up sharply following the company maintaining its full-year outlook after reporting continued strong performance in its global travel retail business for the 13-week period ending May 31,2025.

Discount retailer B&M European Value Retail tanked after posting a mixed bag of results for the past year.

Hiscox, Anglo American Plc., Diageo, St. James's Place, 3i Group, Glencore, Fresnillo, Spirax Group, Smiths Group, Scottish Mortgage and RightMove gained 1.4 to 2.6%.

Property management firm Hammerson shares declined sharply after an announcement that its Chief Executive Officer, Rita-Rose Gagne, plans to retire in 2026.

Marks & Spencer, BP, Haleon, Hikma Pharmaceuticals, Centrica, Land Securities and Shell drifted down 1.2 to 2.1%.

On the economic front, the UK service sector logged a renewed upturn in May amid rising confidence among clients along with receding concerns about US tariffs, final purchasing managers' survey data from S&P Global showed on Wednesday.

The services Purchasing Managers' Index climbed to 50.9 in May from April's 27-month low of 49.0. A reading above 50 indicates expansion. The score was above the initial estimate of 50.2. The composite output index rose to 50.3 in May from 48.5 in April, indicating a slight recovery in the British private sector economy.

The Euro area final HCOB composite output index fell to 50.2 in May from 50.4 in April. However, the score was above the threshold 50-mark and also the flash estimate of 49.5.

The HCOB services Purchasing Managers' Index dropped to 49.7 in May from 50.1 in April. Nonetheless, the PMI reading was above the flash estimate of 48.9.

Germany's private sector slipped back into contraction in May. The final composite output index posted 48.5 in May compared to 50.1 in April. The flash reading was 48.6.

The final services PMI dropped to 47.1 in May from 49.0 in the previous month. The flash score was 47.2.

France's private sector came closer to stabilization in May and registered its slowest fall in the nine-month period of contraction. The final composite output index rose to 49.3 in May from 47.8 in the previous month. The flash score was 48.0.

The final services PMI advanced to 48.9 from 47.3 in April. The reading was initially estimated at 47.4.