European shares rise on Brexit trade deal hopes

FILE PHOTO: Traders work at Frankfurt's stock exchange in Frankfurt, Germany, October 17, 2019. REUTERS/Ralph Orlowski/File Photo

(Reuters) - European shares rose on Wednesday as a report that a Brexit trade deal could be struck later in the day cheered investors amid concerns over the passage of a much-awaited U.S. pandemic aid bill.

The pan-European STOXX 600 index traded 0.4% higher after political editor Robert Peston at Britain’s ITV said a Brexit trade deal between the United Kingdom and the European Union is possible on Wednesday after progress in talks on fishing rights.

However, London’s FTSE 100 lagged as the pound gained on the news and weighed on shares of internationally focused firms on the index.

Daimler was the top boost to the STOXX 600, up 2.7% after business newspaper Handelsblatt reported the German luxury carmaker is preparing a stock market listing of its trucks division.

Meanwhile, U.S. President Donald Trump threatened to not sign an $892 billion coronavirus relief bill, saying it should be amended to increase the amount in the stimulus checks for individuals.

Reporting by Susan Mathew in Bengaluru; editing by Uttaresh.V