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European Stocks Show Strong Move Back To The Upside

European stocks showed a strong move back to the upside during trading on Wednesday after moving mostly lower over the course of the previous session.

While the U.K.'s FTSE 100 Index rose by 0.4 percent, the German DAX Index and the French CAC 40 Index jumped by 1.2 percent and 1.3 percent, respectively.

Renewed optimism about trade contributed to the rebound after a report from Bloomberg News indicated the U.S. and China are moving closer to agreeing on the amount of tariffs that would be rolled back in a phase one trade deal.

Citing people familiar with the talks, Bloomberg said U.S. negotiators expect a phase one deal to be completed before U.S. tariffs are set to rise on December 15.

The people told Bloomberg outstanding issues in the talks include how to guarantee China's purchases of U.S. agricultural goods and exactly which tariffs to roll back.

Bloomberg said the people downplayed President Donald Trump's recent remarks suggesting he would like to delay completing an agreement until after the 2020 elections, noting the president was speaking off the cuff.

Underlying sentiment also improved after data showed activity in China's services sector accelerated to a seven-month high in November, hinting at short-term stabilization in the world's second-largest economy.

Closer to home, euro area private sector growth remained the lowest in six-and-a-half years in November, signaling modest expansion for the fourth quarter, final survey data from IHS Markit showed.

The composite output index held steady at 50.6 in November, coming in slightly above the flash estimate of 50.3.

Swiss drug maker Roche Group jumped 1.1 percent after the U.S. FDA approved Tecentriq (atezolizumab) in combination with chemotherapy for the initial treatment of metastatic non-squamous non-small cell lung cancer.

Chipmakers Infineon Technologies and STMicroelectronics also moved notably higher as investors cheered upbeat guidance from U.S. peer Microchip Technology.

Shares of Airbus also jumped after the airplane maker received an order from U.S. carrier United Airlines for 50 long-range jets.

Meanwhile, Orange shares tumbled 4.7 percent after the telecom company presented its new strategic plan "Engage2025." It announced the disposal of 1,500 non-strategic sites in Spain to Cellnex for 260 million euros.

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