UPDATE 2-European shares jump 1% as report revives U.S.-China trade optimism

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* Fresh swing in U.S.-China deal hopes
* Airbus gains on United Airlines orders
* ASML up 2% after bullish comments from J.P. Morgan
* French telecoms group Orange slides on dividend outlook

(Updates to close, adds portfolio manager's comment)
By Sruthi Shankar and Susan Mathew
Dec 4 (Reuters) - European shares bounced back from a
four-day slump on Wednesday, lifted by a report that Beijing and
Washington are moving closer to a trade deal.
The STOXX 600 .STOXX closed 1.2% up after Bloomberg
reported that the two sides were closer to agreeing on the
amount of tariffs that would be rolled back in a phase one trade
deal. The report lifted the benchmark from a one-month low hit on
Tuesday after U.S. President Donald Trump said a deal might have
to wait until after the presidential election next November.
"I don't think people are positioned one way or the other,"
said Chi Chan, European equities portfolio manager at Hermes
Investment Management. "The reason is, every time you get a bit
of news the market swings quite violently ... that shows there
is nothing particularly baked in."
"It's the marginal buyer that is moving the market."
Financials and industrials led the charge, with planemaker
Airbus AIR.PA rising 3.2% after winning an order from U.S.
carrier United Airlines UAL.O .
Further support came from IHS Markit's better than expected
final reading on November business activity in the euro zone.

Trade-sensitive German shares .GDAXI were up 1.2%, logging
their biggest percentage gain in a month. Chipmakers such as
Infineon Technologies IFXGn.DE and STMicroelectronics STM.MI
gained more than 1.4% after upbeat earnings forecast from U.S.
peer Microchip Technology MCHP.O .
Dutch semiconductor company ASML Holding ASML.AS advanced
by 2.6% after J.P. Morgan raised its price target on
expectations of strong performance in 2020.
French shares .FCHI gained 1.3% after Trump and French
counterpart Emmanuel Macron said on Tuesday that they hoped to
smooth out their differences over a digital services tax.
Washington has threatened 100% tariffs on French champagne,
handbags and other products if France proceeds with the proposed
tax on big technology companies. Luxury stocks such as LVMH LVMH.PA , Kering PRTP.PA and
Hermes HRMS.PA firmed by between 0.6% and 1.5%, enjoying some
respite after a rough day on Tuesday because of Trump's tariff
threat.
A big faller was French telecoms company Orange ORAN.PA ,
which slid 4.7% after traders pointed to disappointment over the
firm's dividend outlook.
London shares .FTSE lagged, rising only 0.4%, partly
because of a rally in the pound, which tends to hit heavyweights
with international exposure. .L GBP/