BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European markets closed higher on Wednesday amid rising optimism about a post-Brexit trade agreement.
News about France re-opening its borders with Britain, allowing travelers and truck drivers who test negative for Covid-19, contributed as well to the somewhat positive mood in the markets.
However, concerns about rising coronavirus cases in the continent and worries about economic growth in the wake of tighter restrictions limited markets' gains.
The pan European Stoxx 600 climbed 1.08%. The U.K.'s FTSE 100 gained 0.66%, Germany's DAX firmed up 1.26% and France's CAC 40 advanced 1.11%, while Switzerland's SMI edged up 0.08%.
Among other markets in Europe, Austria, Belgium, Czech Republic, Finland, Greece, Ireland, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden and Turkey ended with sharp to moderate gains.
Denmark drifted lower, and Iceland ended flat.
In the UK market, Lloyds Banking Group shares moved up 7%. IAG gained 6.3%. Natwest Group, Berkeley Group, JD Sports Fashion, Persimmon, Legal & General, Barratt Developments, Whitbread and Barclays Group gained 4 to 5%.
Shares of British Land Company rose sharply after the company announced it has agreed to sell a 75% interest in a portfolio of three buildings in the West End to Allianz Real Estate, acting on behalf of several Allianz Group companies, for 401 million pounds.
Taylor Wimpey, BP, Sainsbury J, Flutter Entertainment, Phoenix Group Holdings and Tesco also rose sharply.
Among the losers, Just Eat Takeaway slid 2.3%, Reckitt Benckiser shed about 1.6% and CRH ended 1.45% down. AstraZeneca, Experian and Diageo also ended notably lower.
In the German market, MTU Aero Engines, Lufthansa, Continental, Allianz, Volkswagen, Siemens, Deutsche Bank, E.ON, and Fresenius climbed 2 to 5%.
Daimler gained more than 4% after business newspaper Handelsblatt reported the luxury carmaker is planning an initial public offering (IPO) of Daimler Trucks in late 2021.
In France, Airbus, Air France-KLM, Unibail Rodamco, Societe Generale and Technip gained more than 4%. Safran, Credit Agricole, BNP Paribas, Engie, Renault, Valeo, Thales and Vinci also ended with strong gains.
In economic news, data released by the Society of Motor Manufacturers and Traders, or SMMT, showed UK car production declined by 1.4% in November annually to 106,243 units. Output for domestic markets dropped 10.4%, while that for exports gained marginally by 0.3%, the data showed.
According to the data released by Destatis, German import prices decreased 3.8% on a yearly basis, following a 3.9% drop in October. Prices were forecast to ease 4%. On a monthly basis, import price inflation rose to a five-month high of 0.5% from 0.3%. The expected rate was 0.4%.
France's domestic market producer prices increased 1.7% in November after remaining unchanged in the previous month, preliminary data from the statistical office INSEE showed.
The index was driven up by the prices of mining and quarrying products, energy and water, INSEE said.
In Brexit news, after resolving a few fair competition issues, negotiators were reportedly dealing with EU fisheries rights in the U.K. waters. Some sources say the negotiations were in a final phase and an agreement could be reached by Wednesday night.
Copyright RTT News/dpa-AFX