UPDATE 2-European shares jump 1% as report revives U.S.-China trade optimism

  • Reuters
  • Stock Market News
UPDATE 2-European shares jump 1% as report revives U.S.-China trade optimism
Credit: © Reuters.

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* Fresh swing in U.S.-China deal hopes

* Airbus gains on United Airlines orders

* ASML up 2% after bullish comments from J.P. Morgan

* French telecoms group Orange slides on dividend outlook (Updates to close, adds portfolio manager's comment)

By Sruthi Shankar and Susan Mathew

Dec 4 (Reuters) - European shares bounced back from a four-day slump on Wednesday, lifted by a report that Beijing and Washington are moving closer to a trade deal.

The STOXX 600 .STOXX closed 1.2% up after Bloomberg reported that the two sides were closer to agreeing on the amount of tariffs that would be rolled back in a phase one trade deal. report lifted the benchmark from a one-month low hit on Tuesday after U.S. President Donald Trump said a deal might have to wait until after the presidential election next November. don't think people are positioned one way or the other," said Chi Chan, European equities portfolio manager at Hermes Investment Management. "The reason is, every time you get a bit of news the market swings quite violently ... that shows there is nothing particularly baked in."

"It's the marginal buyer that is moving the market."

Financials and industrials led the charge, with planemaker Airbus AIR.PA rising 3.2% after winning an order from U.S. carrier United Airlines UAL.O . support came from IHS Markit's better than expected final reading on November business activity in the euro zone. German shares .GDAXI were up 1.2%, logging their biggest percentage gain in a month. Chipmakers such as Infineon Technologies IFXGn.DE and STMicroelectronics STM.MI gained more than 1.4% after upbeat earnings forecast from U.S. peer Microchip Technology MCHP.O .

Dutch semiconductor company ASML Holding ASML.AS advanced by 2.6% after J.P. Morgan raised its price target on expectations of strong performance in 2020.

French shares .FCHI gained 1.3% after Trump and French counterpart Emmanuel Macron said on Tuesday that they hoped to smooth out their differences over a digital services tax. Washington has threatened 100% tariffs on French champagne, handbags and other products if France proceeds with the proposed tax on big technology companies. stocks such as LVMH LVMH.PA , Kering PRTP.PA and Hermes HRMS.PA firmed by between 0.6% and 1.5%, enjoying some respite after a rough day on Tuesday because of Trump's tariff threat.

A big faller was French telecoms company Orange ORAN.PA , which slid 4.7% after traders pointed to disappointment over the firm's dividend outlook. shares .FTSE lagged, rising only 0.4%, partly because of a rally in the pound, which tends to hit heavyweights with international exposure. .L GBP/

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