European shares higher on hopes of rate cut, trade optimism

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July 4 (Reuters) - European shares advanced for the sixth
straight session on Thursday, as investors took heart from signs
that the U.S.-China trade talks are back on track, with
expectations of interest rate cuts by central banks lifting the
sentiment.
By 0710 GMT, the pan-European STOXX 600 index .STOXX was
up 0.1%, while the euro zone's STOXXE .STOXXE gained 0.2%, a
day after both the bourses hit fresh 2019 peaks on hopes that
France's Christine Lagarde will stick to ECB's dovish policy
stance as the bank's next chief.
Trade-sensitive auto stocks .SXAP and technology companies
.SX8P sectors led the charge among European sectors on news
that top representatives from the United States and China are
arranging to resume talks next week. Also helping the auto stocks were gains in shares of French
car parts company Valeo VLOF.PA after its executive Marc
Vrecko told Reuters it has won 500 million euros ($564 million)
worth of orders for its 'Lidar' car sensor products.
On top of the STOXX 600 was Finnish engineering group Metso
METSO.HE , up more than 6%, after the company said it would
merge Outotec OTE1V.HE with its main Minerals unit to create a
larger engineering firm serving the minerals, metals and
aggregates industries. German lighting company Osram OSRn.DE rose 4.3%, extending
Wednesday's more than 10% rise after the company confirmed it
had received a takeover offer of 3.4 billion euros ($3.84
billion) from Bain and Carlyle CG.O . Italy's FTMIB .FTMIB hit a fresh two-month peak, while its
bank index .FTIT8300 climbed about 2%, after the European
Commission dropped its threat of disciplinary action against the
country.
Meanwhile, on the Wall Street, which is closed for
Independence Day, the three main indexes clinched fresh record
closing highs on Wednesday after a spate of weak economic data
firmed bets that the U.S. Federal Reserve would cut interest
rates to counter slowing growth.