UPDATE 2-Trade optimism propels European shares to near 2-year highs

* STOXX 600 hits highest since Jan 2018
* Ryanair touches 1-year high after strong results
* Autos, miners lead gains
* Hopes of a U.S.-China trade deal rise
* Trump may delay fresh tariffs on EU carmakers

(Updates prices)
By Susan Mathew
Nov 4 (Reuters) - Optimism over trade talks helped European
shares close at their highest level in nearly two years on
Monday, while a strong earnings report by Ryanair lifted Irish
stocks to a more than one-year high.
Tariff-exposed European miners .SXPP and auto and parts
makers .SXAPP shot up almost 3%, taking the pan-European STOXX
600 index .STOXX up 1% to its highest since January 2018.
French stocks .FCHI scaled 12 year highs, while German
shares .GDAXI ended at levels not seen since June last year.
Among other sectors, a jump in oil prices saw energy shares
.SXEP post their best day in seven weeks, while euro zone bank
stocks .SX7E jumped 2.5%.
U.S. Commerce Secretary Wilbur Ross said on Sunday licences
for U.S. companies to sell components to China's Huawei
Technologies Co would come "very shortly", adding there was no
reason a trade deal could not be on track to be signed this
month. Analysts also pointed to a looming decision on U.S. tariffs
on European goods due next week. "European stocks are higher across the board on expectations
that we may see the Trump administration delay fresh tariffs
that were suppose to hit EU carmakers," said Edward Moya, chief
market strategist at OANDA.
Auto stocks .SXAP rallied 2.9%, powered also by reports
that Fiat Chrysler FCHA.MI and Peugeot owner PSA PEUP.PA
aimed to sign a final merger agreement as early as next month.
"Expectations are growing that we could see the Europeans
have a much easier time negotiating with the Trump
administration than what we have seen so far with the Chinese,"
he said, adding that optimism also stemmed from hopes that new
ECB chief Christine Lagarde will deliver fiscal stimulus.
Lagarde is due to deliver her first speech as president of
the European Central Bank at an event later in the day. A survey
showing rebounding euro zone investor morale in November also
added to the positivity. Europe's main index had touched its highest since an
all-time peak hit in April 2015 during the session to mark a
strong start to the week after four weeks of gains.
Ryanair RYA.I rose 8.5% to a one-year high after the
budget carrier beat first-half profit expectations. Its shares
helped Irish stocks .ISEQ jump 1.8%, the most among regional
indexes.
Siemens Healthineers SHLG.DE jumped 9.5% to a record high
after it said it expected strong growth to continue next year
following a better-than-expected fourth quarter. Expectations had been low for third-quarter earnings from
European companies, and most firms have surpassed estimates four
weeks into the reporting season.
London-listed GVC GVC.L was the worst performer on STOXX
600, tumbling 10.5%, as British gambling companies were hit
after a cross-party group of lawmakers called for a raft of
measures to overhaul online casinos and protect vulnerable
people. Meanwhile, investors shrugged off weak manufacturing data
from major European regions, even as the factory activity in the
bloc's powerhouse, Germany, remained in recession in October.