European Shares Surge Amid Renewed U.S.-EU Trade Talks

European shares experienced an upswing on Wednesday, spurred by gains in the automobile sector. This came after U.S. President Donald Trump rekindled hopes for a trade agreement with the EU, following a successful accord with Japan.

The pan-European STOXX 600 index saw a rise of nearly 1%, reaching 549.6 points by 0715 GMT. This marked a reversal from three consecutive days of declines, with Britain's FTSE 100 extending its winning streak to a record-setting fifth session. France's CAC 40 made notable strides, leading the region with a 1.3% increase.

The rally was largely propelled by a 3.4% surge in European automobile stocks, mirroring gains among their Asian counterparts. Highlights included Porsche and Mercedes-Benz, which advanced by 7.6% and 5.8%, respectively. This boost followed Trump's arrangement with Japan, which effectively lowers auto import tariffs and shields Japan from further U.S. levies.

(With inputs from agencies.)