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European Shares Extend Gains On Trade Optimism


European stocks were moving higher on Wednesday after U.S. President Donald Trump tweeted, "talks with China are going very well!".

As trade talks between the United States and China entered a third day, there is speculation that a trade deal can be struck ahead of a March 1 deadline established by Trump and Chinese President Xi Jinping last month at the G-20 summit in Argentina.

The pan-European Stoxx Europe 600 index was up nearly 1 percent at 349.17 in opening deals after rising 0.9 percent on Tuesday.

The German DAX climbed 1.2 percent, France's CAC 40 index was rising 1.3 percent and the U.K.'s FTSE 100 was gaining 1 percent.

Tech stocks were rising despite reports that Apple Inc. is cutting its current production plan for new iPhones by about 10 percent for the next three months. ST Microelectronics NV jumped 4.4 percent and Dialog Semiconductor soared 5.3 percent.

Luxury giant LVMH, which has exposure to the Chinese market, advanced 2.7 percent.

Housebuilder Taylor Wimpey soared more than 6 percent in London. After a positive trading update, the company said it remains committed to returning 600 million pounds to shareholders by way of total dividend in 2019. Rival Persimmon climbed 4.6 percent.

Fashion chain Ted Baker jumped 11.3 percent. The company reported over 12 percent growth in retail sales for the five-week period from December 2, 2018 to January 5, 2019 and said its results for the 52 weeks ending 26 January 2019 will be in line with expectations.

Airbus shares rallied 3.5 percent in Paris. The aircraft manufacturer confirmed that it achieved 800 commercial aircraft deliveries in 2018, subject to the finalization of the auditing process.

On the economic front, Germany's merchandise trade surplus unexpectedly grew in November to its biggest level in five months despite weaker exports, preliminary data from the Federal Statistical Office showed.

The non-adjusted trade surplus grew to EUR 20.5 billion from EUR 18.9 billion in October. Economists had expected a surplus of EUR 18.6 billion.

U.K. permanent job appointment grew at the weakest pace since early 2017 amid a sharp decline in the supply of candidates, survey data from IHS Markit showed.

The KPMG/REC report on Jobs showed that weaker growth in appointments led to further marked increases in starting pay and salary inflation was the quickest in over three years.

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