By Reuters
European shares edged higher on Wednesday, led by banks, while investors assessed the prospects for trade deals ahead of US President Donald Trump鈥檚 July 9 tariff deadline.
The pan-European STOXX 600 index advanced 0.3% at 541.91 points, as of 0818 GMT. Other major regional indexes also traded higher.
Trump, on Tuesday, said he was not considering an extension of the July 9 deadline for countries to negotiate trade deals with the US He expressed optimism about a potential trade deal with India but was skeptical about reaching a similar agreement with Japan.
Meanwhile, European Union鈥檚 trade chief is expected to hold negotiations this week in Washington to avert higher US tariffs.
鈥淚t looks like there is progress slowly being made (on trade deals)鈥.whether this deal occurs by the 9th or after isn鈥檛 that relevant as long as the trajectory is quite good.鈥, said said Viresh Kanabar, macro strategist – asset allocation at Macro Hive.
In the US, Senate Republicans passed Trump鈥檚 massive tax-and-spending bill on Tuesday by the narrowest of margins.
The legislation now heads to the House of Representatives for possible final approval.
Banks led sectoral gains, rising 1.5%. European industrial miners rose 1.4%.
Kanabar said that investors are seeing a source of good value in European banks, noting, 鈥渢he banking system has moved away from the pre-pandemic period of low returns and the consumer picture is much stronger鈥.
European shares end marginally lower
Among stocks, Spain鈥檚 Banco Sabadell gained 5.1%, the most among bank stocks, after Santander said it had reached an agreement to buy its British unit TSB.
Avanza Bank gained 7% after a report said that the Swedish financial group鈥檚 founder is considering taking the company private.
Shares in European renewable energy companies rose after the US Senate passed a revised budget bill that was more positive for the wind industry compared to an earlier version. Vestas rose 9.4% and was the top gainer in the STOXX 600.
Orsted gained 4.1%, hitting a three-month high.
Britain鈥檚 Spectris gained 4.5% after the scientific instruments maker accepted an improved takeover offer from US private equity firm KKR.
Conversely, Greggs fell 14.3% after the British baker and fast food chain said its annual operating profit could be modestly below last year鈥檚 levels.
Additionally, the Financial Times reported on Wednesday that the EU is blocking the UK government鈥檚 attempts to join a pan-European trading bloc. Euro-zone unemployment data for May is due later in the day.