BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European markets ended higher on Wednesday, extending recent gains, as growing optimism about progress in U.S.-China trade talks outweighed some disappointing economic data out of U.S. and Europe.
Investors were also tracking news on Brexit and news from corporates for direction.
The pan European Stoxx 600 ended up 1.01%. Among the major indices in Europe, Germany's DAX climbed up 1.7%. France's CAC 40 advanced 0.84% and the U.K.'s FTSE closed up 0.37%, while Switzerland's SMI gained 0.35%.
Among other markets, Austria, Belgium, Czech Republic, Finland, Greece, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Spain, Sweden and Turkey closed with sharp to moderate gains.
Russia edged up marginally and Denmark closed weak.
Once again, shares from resources and automobile sectors turned in a fine performance.
Shares of ProSiebenSat, a media company from Germany, ended stronger by about 6% amid speculation over a merger with Mediaset, the Italian broadcaster.
Infienon, Covestro, BASF, Linde, Deutsche Post, Continental, Thyssenkrupp, Fresenius, HeidelbergCement, Lufthansa, Bayer, Allianz, BMW, Volkswagen and Siemens were the other major gainers in the German market.
French stock STMicroElectronics surged up 5.7%. Sodexo, Saint Gobain, ArcelorMittal, Valeo, Safran, Vivendi, Schneider Electric, Credit Agricole, AXA, Orange, Vinci and Veolia Environment also rose sharply.
Taylor Wimpey, Royal Mail, Dixons Carphone, IAG, Persimmon, Paddy Power, Kingfisher, Ferguson, Fresnillo, Hargreaves Lansdown and CRH were among the notable gainers in the U.K. market.
In economic news from Eurozone, retail sales grew for a second consecutive month and at a faster-than-expected pace of 0.4% (month-on-month) in February in the euro area, preliminary data from Eurostat showed.
On a year-on-year basis, retail sales rose 2.8% after a 2.2% increase in January. Economists had expected 1.5% growth.
Among other positive economic news from Europe, Spain's service sector grew at the fastest pace in over a year, Italy's services sector grew at the fastest pace in six months in March.
Meanwhile, UK service sector shrunk for the first time in over two-and-a-half years in March as domestic political uncertainty damped demand amid labor shortages, survey data from IHS Markit showed on Wednesday. The services purchasing managers' index, or PMI fell to 48.9 in March from 51.3 in February. Economists had expected a score of 51.
On the trade front, people briefed on the trade talks told the Financial Times top U.S. and Chinese officials have resolved most of the issues standing in the way of a deal to end their long-running trade dispute.
Officials are still haggling over how to implement and enforce the agreement, however, with Myron Brilliant, executive vice-president for international affairs at the U.S. Chamber of Commerce, telling reporters the last 10 percent is the 'hardest part.'
The Financial Times said the two sides remain apart on two key issues: the fate of existing U.S. tariffs on Chinese goods and the terms of an enforcement mechanism demanded by Washington to ensure that China abides by the deal.
On Brexit, according to reports, British Prime Minister Theresa May and Labor Party leader Jeremy Corbyn met this afternoon and agreed a 'programme of work' to try to find a way forward to put to MPs for a vote.
Copyright RTT News/dpa-AFX
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