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European Shares Seen Opening On Flat Note


European stocks may open flat to slightly higher on Friday after steep losses in the previous session. That said, underlying sentiment could remain cautious after the U.S. Senate revealed its version of tax reform legislation proposing to delay a corporate tax cut until 2019.

The Japanese yen rose on safe-haven demand, copper edged lower for a third straight day and gold held near a three-week high as the dollar nursed losses amid tax reform worries and simmering Middle East tensions. Oil held stable to hover near two-year highs after rallying sharply over the past week.

Asian stock markets are trading mostly lower, with Japanese shares leading regional declines as uncertainty about U.S. tax reforms soured investor risk appetite.

The day's economic calendar remains light, with industrial production and foreign trade figures from the U.K. slated to be released later in the session.

Economists expect industrial output to climb 0.3 percent sequentially in September, slightly faster than the 0.2 percent increase logged in August.

The visible trade deficit is seen narrowing to GBP 12.8 billion in September from GBP 14.25 billion in August.

Overnight, the Dow Jones Industrial Average and the S&P 500 dropped around 0.4 percent each while the tech-heavy Nasdaq Composite shed 0.6 percent.

European stocks finished sharply lower on Thursday as Brexit talks resumed, metal prices dropped and a slew of corporate earnings disappointed investors.

The pan-European Stoxx 600 index tumbled 1.1 percent, the German DAX plunged as much as 1.5 percent, France's CAC 40 index declined 1.2 percent and the U.K.'s FTSE 100 shed 0.6 percent.

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