LIVE MARKETS-Banks do the heavy lifting; DAX, FTSE near peaks

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BANKS DO THE HEAVY LIFTING; DAX, FTSE NEAR PEAKS

Traders were largely unimpressed by the latest U.S. tariff threats on copper, drugs, and chips, continuing to buy European shares for a third straight day, as they waited for President Donald Trump to unveil a trade deal with Europe.

"This is the ultimate TACO test – the market still seems to think that Trump will back down," writes Neil Wilson, strategist at Saxo Markets in London.

The buying pushed the region-wide STOXX 600 .STOXX up 0.5% in morning trade on Wednesday, with banks .SX7P doing the heavy lifting, up more than 1% to a fresh high since October 2008. Defence .SXPARO, up to a new peak, was also in demand.

Drugmakers .SXDP and London-listed miners .SXPP were a touch weaker, but overall moves remained contained and far from affecting broader price action in the region.

Many country indices were just below their highs, with the DAX .GDAXI in Frankfurt and the FTSE 100 .FTSE in London both closing in on their previous all-time highs.

Here is your opening snapshot:

(Danilo Masoni)

EARLIER ON LIVE MARKETS:

EUROPE BEFORE THE BELL: TRADE DEAL AWAITED, FUTURES UP CLICK HERE

TRUMP TARIFF VOLLEYS MET WITH CAUTION, NOT CHAOS CLICK HERE