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European Shares To Open On Cautious Note


European stocks may open flat to slightly lower on Wednesday after five days of gains. The dollar rose against the yen amidst a spike in U.S. yields, while sterling and the euro added to overnight gains ahead of the Bank of England's rate setting meeting and U.S. inflation data, both due on Thursday.

Gold held steady after two days of losses while oil prices remain mixed amid speculation that OPEC and its allies are discussing an extension of output curbs by more than three months.

Asian stocks are trading mixed despite a stronger lead from Wall Street overnight after U.S. Treasury Secretary Steven Mnuchin said the Trump administration was "super focused" on getting tax reform done by the end of the year.

The day's economic calendar remains heavy, with a report on U.K. unemployment, industrial production figures from the euro area and German inflation data slated for release later in the day.

Overnight, U.S. stocks rose for a second straight session as hopes of tax reform helped lift financials and tech stocks also gained ground amid Apple's highly-anticipated product launches. All three major indexes rose about 0.3 percent.

European markets closed mostly higher on Tuesday, although the U.K. markets fell slightly as the pound surged after the release of strong U.K. inflation data. The pan-European Stoxx Europe 600 index rose half a percent to extend gains for a fifth day.

The German DAX gained 0.4 percent and France's CAC 40 index added 0.6 percent while the U.K.'s FTSE 100 slid 0.2 percent.

by RTTNews Staff Writer

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