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European Markets End Higher On Trade Talks Hopes

European markets ended on a buoyant note on Tuesday, with investors indulging in some hectic buying in shares from across several sectors, amid optimism over U.S.-China trade talks and easing fears about another U.S. government shutdown.

Investors, besides reacting to corporate earnings reports, were also closely following the developments on Brexit.

The pan European Stoxx 600 ended 0.47% up. Among the major markets in Europe, the U.K. ended marginally up, with its benchmark FTSE 100 edging up 0.06%. Germany's DAX surged up 1.01% and France's CAC 40 added 0.84%, while Switzerland's SMI advanced by 0.65%.

Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Italy, Netherlands, Norway, Poland, Portugal, Russia and Spain gained 0.5 to 1.3%.

Greec ended slightly up, while Iceland, Finland edged down marginally.

Shares of French tire maker Michelin soared about 13%, lifted by strong earnings outlook given by the company for 2019. STMicroElectronics gained 5.3%, Kering moved up 3.3% and Peugeot gained 2.85%.

Legrand, Louis Vuitton, Valeo, Credit Agricole, Vinci, Carrefour, L'Oreal, Societe Generale, BNP Paribas and Hermes International were among the other notable movers in the French market.

In the German market, Continental, Fresenius, Covestro, BASF, Daimler, Infineon, Volkswagen, Deutsche Bank and Linde gained 2 to 3.5%. Bayer, Beiersdorf, Muench.Rueckvers and Adidas also ended with solid gains.

TUI AG, down 7.4%, was the most prominent loser in the U.K. market. The stock tumbled after the company's loss widened in the first quarter.

J Sainsbury, Intu Properties, Barratt Developments, Persimmon, Taylor Wimpey, Whitbread, Berkeley Group and Morrison Supermarkets declined 1.6 to 3.3%.

DCC, Kingfisher, Burberry Group, Schroders, Unilever, Centrica, Dixons Carphone, Babcock International, RBS, Royal Dutch Shell and Capita ended higher.

On the Brexit front, British Prime Minister Theresa May told lawmakers to hold their nerve over Brexit and give her more time to negotiate a deal acceptable to both the European Union and the British parliament.

May said, "The talks are at a crucial stage," and added, "We now all need to hold our nerve to get the changes this House requires and deliver Brexit on time."

In the U.S., congressional negotiators reached an agreement to avoid a new government shutdown and provide finance for the construction of new barriers along the U.S.-Mexico border.

Meanwhile, investors are slightly optimistic about U.S. and China reaching a trade deal before the expiry of the 90-day truce. Later this week, U.S. Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He are scheduled to discuss on trade issues.

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