UPDATE 2-European shares continue climb on U.S.-China trade optimism

* Export-heavy German lead gains in the region
* British American Tobacco rises after FY forecast raise
* Sweden's SEB up after dismissing money laundering report
* Austria's Andritz slips after disappointing profit outlook

(Updates to close)
By Medha Singh
Nov 27 (Reuters) - European stocks rose for the fourth
session on Thursday, as telecom stocks rose after a report that
Deutsche Telekom is examining a possible merger with France's
Orange, while hopes for an end to the U.S.-China trade dispute
also helped the mood.
Deutsche Telekom DTEGn.DE gained 1.3% after the German
business daily Handelsblatt report. Orange ORAN.PA shares were
little changed as it said "there are no ideas or discussions
going on". Telecoms .SXKP were the top performing European sub-sector
with their more than 1% rise.
The pan-European STOXX 600 .STOXX index finished 0.3%
higher at a new 4-four peak as comments from U.S. President
Donald Trump on Tuesday that Washington was in the "final
throes" of work on a deal continued to buoy the sentiment.
U.S. stock indexes .SPX .IXIC .DJI also hit record
highs on Wednesday.
"Trump's comments has definitely been a bit of a boost to
European markets," said Simona Gambarini, markets economist at
Capital Economics.
"The move has so far been quiet because we have heard
similar comments before and they haven't really translated into
anything more concrete and people are still a bit sceptical
about trade."
Trade optimism has helped the benchmark index rise about
1.5% in a relatively uneventful week with a U.S. Thanksgiving
holiday on Thursday. Volumes on the STOXX 600 index were well
below long-term daily averages on Wednesday.
The benchmark European index is expected to hit a record
high by the end of next year, a Reuters poll showed, underpinned
by loose monetary policy and hopes of an orderly Brexit.
Among major country indexes, Germany's trade-reliant
.GDAXI was leading the charge with its 0.4% rise, shrugging
off weak data out of China earlier in the day. Italy's FTMIB
.FTMIB slipped after two days of gains and France's CAC 40
.FCHI was marginally lower.
The biggest boost to benchmark index were shares of British
American Tobacco BATS.L , up 3% after it raised its full-year
revenue forecast, even as it said a slowdown in the U.S. vaping
market would lead to lower revenue growth in its vaping arm.
Sweden's SEB SEBa.ST gained more than 3% as said it saw no
need for further action after a television report said accounts
at the bank had links to suspected money laundering in Estonia.
Engineering group Andritz ANDR.VI suffered their sharpest
decline in nearly seven months after the Austrian firm forecast
next year's profit to be similar to 2019, despite expecting a
significant increase in sales.