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European Shares Seen Up As Risk Appetite Improves

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European stocks look set to open higher on Monday amid easing geopolitical tensions after North Korea refrained from launching more missiles at the weekend.

Fears about Irma also waned as the hurricane came ashore in Florida weaker than anticipated.

The U.S. dollar won a reprieve from risk aversion as the United Nations prepared to vote on a new round of sanctions against North Korea.

Gold retreated from a one-year high while oil edged higher after falling more than 3 percent on Friday.

Oil was helped by reports that the production cut deal that OPEC, Russia, and several other producers agreed to late last year could be extended beyond March 2018.

Asian stocks are broadly higher, led by Japan as Treasuries fell and the dollar rebounded from its lowest level in more than two years on improved risk appetite.

The offshore yuan declined after China's central bank reportedly scrapped reserve requirements on the trading of foreign-exchange forwards.

In economic releases, China's August inflation data released over the weekend came in better than expected, while Japanese core machinery orders rose in July at the fastest pace since January 2016.

The economic calendar is relatively light this week, with investors awaiting U.S. retail and consumer inflation figures for further clues to the Fed's policy outlook.

The Bank of England's rate-setting monetary policy committee (MPC) will announce its rate decision on Thursday amid growing concerns over inflation.

U.S. stocks closed mostly lower on Friday as investors pondered threats from North Korea and the economic impact of major storms like Harvey and Irma. The S&P 500 dropped 0.2 percent and the Nasdaq Composite shed 0.6 percent while the Dow inched up 0.1 percent.

European markets fluctuated before closing slightly higher on Friday even as a rising euro put exporters under pressure and mining stocks sagged after the release of disappointing exports data from China. The pan-European Stoxx Europe 600 index rose 0.2 percent.

The German DAX inched up by 0.1 percent, while France's CAC 40 ended little changed with a negative bias and the U.K.'s FTSE 100 dropped 0.3 percent.

by RTT Staff Writer

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