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European Markets End Sharply Higher On Positive News About Trade Talks

European stocks had a pretty strong outing on Friday as investors kept buying at several counters amid rising optimism about a resolution to U.S.-China trade deal and easing worries about Brexit.

Hopes about a deal, albeit an interim one, between the U.S. and China have risen after U.S. President Donald Trump commented through Twitter that good things were happening at China trade talk meeting and feelings are warmer than in recent past and more like old days.

Trump tweeted, "I will be meeting with the Vice Premier today. All would like to see something significant happen!" and followed it up with another tweet that a potential trade deal would not have to go through the "very long and politically complex Congressional Approval Process."

With most of the markets across Europe doing well and several sectors attracting attention, the pan European Stoxx 600 ended up 2.31%. Among the major indices in Europe, Germany's DAX gained 2.86%, France's CAC 40 advanced 1.73%, the U.K.'s FTSE 100 ended up 0.84% and Switzerland's SMI closed higher by 1.15%.

Among other markets, Austria, Belgium, Czech Republic, Finland, Greece, Ireland, Italy, Poland, Portugal, Spain and Sweden all ended sharply higher.

Denmark, Iceland, Norway and Turkey closed with modest gains, while Russia ended weak.

In Germany, SAP climbed up nearly 10%. SAP's board members Jennifer Morgan and Christian Klein were appointed co-CEOs after Bill McDermott stepped down.

Volkswagen, Covestro, Deutsche Bank, Infineon, Daimler, BASF, Allianz, Siemens, HeidelbergCement, Lufthansa, BMW, Fresenius, Deutsche Post and Continental gained 2 to 5%.

In the French market, STMicroElectronics surged up 7%. ArcelorMittal, Societe Generale, Renault, BNP Paribas, Saint Gobain, Peugeot, Credit Agricole, AXA, Schneider Electric, Vinci and Legrand gained 3 to 6%.

Shares of Publics Groupe tumbled more than 14% after the company lowered its full-year sales targets.

In London, Lloyds Banking, Barratt Developments, Marks & Spencer, RBS, Persimmon, Taylor Wimpey, Tui and Kingfisher gained 9 to 13%.

Berkeley, EasyJet, IAG, Next, Barclays, British Land Company, Land Securities, United Utilities, BT Group, Tesco, NMC Health and Aviva moved up 6 to 8.5%.

In economic news, Germany's consumer price inflation slowed as initially estimated in September to the lowest since early 2018, final data from Destatis showed.

Consumer price inflation slowed to 1.2% in September from 1.4% in August. This was the lowest rate since February 2018, when the rate was 1.1%.

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