(Reuters) -European shares nudged higher on Monday as investors tracked signs of progress on trade talks ahead of the July 9 deadline for lifting the pause on U.S. President Donald Trump’s reciprocal tariffs.
The pan-European STOXX 600 index advanced 0.2% at 544.47 points, as of 0714 GMT, but was on track to log a monthly fall. Other major regional indexes also traded higher.
Market optimism over U.S. trade deals got a boost last week on easing U.S.-China trade tensions. Canada on Sunday said it had rescinded its digital services tax to restart stalled talks with the U.S., further lifting sentiment.
Meanwhile, the British government said on Monday the trade deal that reduced U.S. tariffs on UK cars and aircraft parts has come into effect. However, the issue of steel and aluminum tariffs remains unresolved.
European defence stocks led sectoral gains with a near 1% climb.
STMicroelectronics gained 2.6% after J.P. Morgan placed the Franco-Italian chipmaker on positive catalyst watch.
Investors also await German, Italian CPI data due later in the day.
(Reporting by Sukriti Gupta and Sanchayaita Roy in Bengaluru)
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