UPDATE 1-European shares rise; investors await signs on trade progress

European shares edged higher on Wednesday, led by banks, while investors assessed the prospects for trade deals ahead of U.S. President Donald Trump's July 9 tariff deadline.

The pan-European STOXX 600 index advanced 0.3% at 541.91 points, as of 0818 GMT. Other major regional indexes also traded higher. Trump, on Tuesday, said he was not considering an extension of the July 9 deadline for countries to negotiate trade deals with the U.S.

He expressed optimism about a potential trade deal with India but was skeptical about reaching a similar agreement with Japan. Meanwhile, European Union's trade chief is expected to hold negotiations this week in Washington to avert higher U.S. tariffs.

"It looks like there is progress slowly being made (on trade deals)....whether this deal occurs by the 9th or after isn't that relevant as long as the trajectory is quite good.", said said Viresh Kanabar, macro strategist - asset allocation at Macro Hive. In the U.S., Senate Republicans passed Trump's massive tax-and-spending bill on Tuesday by the narrowest of margins. The legislation now heads to the House of Representatives for possible final approval.

Banks led sectoral gains, rising 1.5%. European industrial miners rose 1.4%. Kanabar said that investors are seeing a source of good value in European banks, noting, "the banking system has moved away from the pre-pandemic period of low returns and the consumer picture is much stronger".

Among stocks, Spain's Banco Sabadell gained 5.1%, the most among bank stocks, after Santander said it had reached an agreement to buy its British unit TSB. Avanza Bank gained 7% after a report said that the Swedish financial group's founder is considering taking the company private.

Shares in European renewable energy companies rose after the U.S. Senate passed a revised budget bill that was more positive for the wind industry compared to an earlier version. Vestas rose 9.4% and was the top gainer in the STOXX 600. Orsted gained 4.1%, hitting a three-month high. Britain's Spectris gained 4.5% after the scientific instruments maker accepted an improved takeover offer from U.S. private equity firm KKR.

Conversely, Greggs fell 14.3% after the British baker and fast food chain said its annual operating profit could be modestly below last year's levels. Additionally, the Financial Times reported on Wednesday that the EU is blocking the UK government's attempts to join a pan-European trading bloc.

Euro-zone unemployment data for May is due later in the day.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)