UPDATE 3-European shares soar on rising hopes of Brexit, trade deal

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* UK, Ireland PMs say can see path to a Brexit deal
* Dublin's ISEQ up 3.7%, FTSE mid-cap jumps 4.2%
* Germany's SAP up 10% after strong Q3, CEO exit
* Hugo Boss hits lowest in a nearly a decade
* Second day of U.S.-China trade talks conclude

(Adds fresh comment, updates to close)
By Susan Mathew
Oct 11 (Reuters) - European shares were on a tear on Friday
as a surprise breakthrough in Brexit negotiations drove
UK-focused London-listed companies and the Irish index about 4%
higher, while German shares logged their best day in nine
months.
London-listed companies with exposure to the domestic
economy swung to a premium over the exporter-heavy blue-chip
index .FTSE for the first time since May, in a reversal of
fortune for the much-shunned market. The mid-cap index .FTMC posted its best day since May
2010, while the Irish bourse .ISEQ , seen as a barometer for
Brexit sentiment, had its best session since June 2016.
JP Morgan's UK domestic plays index, which was created in
2017 and tracks about 30 UK stocks that make all or most of
their revenue at home, .JPDEUKDM ended 7.7% higher, its best
performance on record.
"Markets are increasingly narrowly driven, this means that
every piece of good news is going to propel markets strongly
higher," said Marija Veitmane, senior strategist at State Street
Global Markets.
"However, we are yet to see concrete details on the deal. We
expect markets to sell off sharply should those hopes be
disappointed."
UK Prime Minister Boris Johnson and his Irish counterpart
unexpectedly said overnight that they had found a pathway to a
possible deal over Britain's departure from the European Union
after three years of crippling uncertainty.
But any deal would need approval from the British
parliament, which Johnson suspended unlawfully last month and in
which he has no majority.
Britain and the EU agreed to hold intense talks over the
next few days in a bid to secure a deal, but arrangements around
British-Irish border controls remain at issue, the EU said.
The pan-European STOXX 600 index .STOXX rose 2.3% with
most major European indices gaining more than 1.5%. The German
index .GDAXI , packed with automakers exposed to UK demand,
jumped 2.9%.
SAP SAPG.DE , Europe's most valuable tech company, also
contributed to gains in Frankfurt, rising 10% for its best day
since April after releasing strong third-quarter results and
saying its long-term CEO had stepped down. Rising hopes of top-level trade talks between the United
States and China yielding a partial trade deal and a delay in
planned U.S. tariff increases also brightened sentiment.
U.S. Treasury Secretary Steven Mnuchin, Chinese Vice Premier
Liu He and other senior officials concluded discussions on
Friday.
The banking index .SX7P , led broad-based gains, up 5% for
its best day since April 2016 and with British lenders CYBG
CYBGC.L , Lloyds LLOY.L and Royal Bank of Scotland RBS.L
among the top gainers.
Publicis PUBP.PA tumbled 14.5% to a seven-year low after
the ad firm lowered its full-year sales target for the second
time in 2019. Its London rival WPP WPP.L lost 3.4%.
Fashion house Hugo Boss BOSSn.DE sank 13.5% to its lowest
in almost 9 years after the company cut its 2019 earnings
forecast and reported third quarter results below expectations.
The numbers came hard on the heels of a strong sales update
from Louis Vuitton owner LVMH LVMH.PA on Thursday.

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UK domestic stocks vs exporters https://tmsnrt.rs/2onXrOI
Price performance of German, Irish and UK mid-cap stocks https://tmsnrt.rs/32ilrBz
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