European stocks end midweek with gains as EU-US trade talks continue

ISTANBUL

European stocks closed higher Wednesday as investors are waiting for updates on a potential trade deal with the US.

The pan-European Stoxx 600 index rose 0.78%, or 4.25 points, to close at 549.96.

Germany's DAX 40 index was up 1.42% to end at 24,549.56 and Britain's FTSE 100 added 0.15% to 8,867.02 points.

France's CAC 40 rose 1.44% to 7,878.46 and Italy's FTSE MIB index climbed 1.59% to close at 40,821.31.

Investors are awaiting an announcement of a trade deal between the US and the EU as US President Donald Trump extended a tariff deadline Monday to Aug. 1.

The US president also sent tariff letters to 21 countries in two days, imposing tariffs from between 20% to 40%.

Trump said Tuesday that the EU has changed its tone. "They treated us very badly until recently. Now they're treating us very nicely. It's like a different world."

"We're probably two days off from sending them a letter. We are talking to them. I just want you to (know) a letter means a (tariff) deal," he said.

EU Commission President Ursula von der Leyen, meanwhile, made a broad statement on trade talks with the US.

“We stick to our principles, we defend our interests, we continue to work in good faith, and we get ready for all scenarios,” she told the European Parliament on Wednesday.

On the other hand, German Chancellor Friedrich Merz said he is "cautiously optimistic" that an agreement can be reached in the coming days.

"This is primarily in the interest of our export-oriented economy,” Merz noted.

German pharmaceutical firm Merck announced Wednesday that it reached an agreement to acquire UK-based Verona Pharma for $10 billion or $107 per share to expand its portfolio of lung disease medications.