Mubasher: European stocks traded lower earlier in Wednesday as investors were awaiting a possible  Brexit deal between the UK and the European Union (EU), CNBC reported.

By 7:52 am GMT, the pan European blue chip index fell by 0.2% to 393.15 points, led by a drop of 1.2% in basic resources stocks, whereas healthcare shares climbed by 0.6%.

Brexit talks between London and Brussels continued through the early hours of Wednesday, as UK Prime Minister Boris Johnson aims to clinch a deal with EU leaders ahead of a bloc meeting this week.

This came along with reports from UK media on late Tuesday stating that both sides were closer to a deal, after concessions by London over the Irish border.

A draft deal could be published on Wednesday, if details are finalised.

Moreover, figures on UK consumer price index (CPI) inflation along with another report on producer prices are due shortly.

On the trade front, tensions between the US and China escalated once again, following China’s threat to take countermeasures to a US bill supporting anti-government protests in Hong Kong.

In terms of individual stocks, LED lighting company shares jumped by 3.1% leading the STOXX 600, after announcing the takeover of Cooper Lighting for $1.4 billion.

Meanwhile, at the bottom of the European benchmark was the UK’s BBA Aviation shares, which fell by 4.6%, while property giant Hammerson slipped by 3%, after its stocks were downgraded.