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European Shares Seen Lower As Risk Appetite Wanes


European stocks may open lower on Thursday following a softer lead from Wall Street overnight and a weak trend across Asia this morning after a combination of factors pushed global bond yields higher in recent sessions.

Asian stocks are broadly lower while safe-haven assets like the yen and gold jumped on a weaker dollar. Oil prices held near three-year highs after data showed U.S. crude inventories fell almost 5 million barrels in the week to January 5.

National accounts data from Germany is due later in the day, headlining a light day for the European economic news.

Across the Atlantic, trading today may be impacted by reaction to economic reports on weekly jobless claims and producer price inflation. U.S. banks JPMorgan Chase & Co. and Wells Fargo & Co. are due to report earnings on Friday.

Earlier today, Chinese Premier Li Keqiang reportedly said the economy expanded around 6.9 percent in 2017. The economic situation is "better than expected," Li said in a forum in Cambodia. The National Bureau of Statistics is scheduled to issue annual GDP data on January 18.

Wall Street experienced its first loss-making session this year overnight after reports that China may slow or halt purchases of U.S. Treasuries and that President Donald Trump may pull the U.S. out of the North American Free Trade Agreement. The major averages fell about 0.1 percent.

European markets ended a five-day streak of gains on Wednesday as rising bond yields on expectations of higher interest rates and the recent surge in oil prices spurred investors to lock in some profits after recent strong gains.

The pan-European Stoxx Europe 600 index shed 0.4 percent. The German DAX dropped 0.8 percent and France's CAC 40 index slid 0.4 percent while the U.K.'s FTSE 100 inched up 0.2 percent.

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