European shares touched a record high after Phil Hogan, the EU trade commissioner, struck a positive tone on talks with Washington, soothing some concerns over a possible escalation in trade tensions between the cross-Atlantic allies.

The pound surged against the euro today amid jitters over Catalonia's independence and news that EU member states will start preparing for the second phase of Brexit talks.

The pound hovered near eight week lows on Tuesday as investors started to fret over the prospect of a second Scottish referendum and the pending trigger of Article 50.