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European Shares Subdued On Italy Concerns


European stocks turned lower on Tuesday as investors watched yuan movements and developments over Italy's budget plans for directional cues.

The U.S.-China trade war may intensify after China allowed its currency to slip past a psychological bulwark.

The euro languished near a seven-week low after Italian Economy Minister Giovanni Tria said he wanted to have constructive talks with EU partners over the 2019 budget.

After unveiling the DEF economic blueprint in parliament, Tria said there was "a lag in economic growth and employment, a lag that is no longer acceptable, 10 years since (the start of) the economic crisis".

Investors also watched Brexit developments, with the Confederation of Business Industry demanding that Philip Hammond use the budget on 29 October to bolster investment by £3.5 billion to tackle Brexit uncertainty.

The pan-European Stoxx Europe 600 index was down 0.25 percent at 371.27 in late opening deals after losing 1.1 percent the previous day.

The German DAX and the U.K.'s FTSE 100 were down about 0.4 percent, while France's CAC 40 index was declining 0.2 percent.

Mining heavyweights Anglo American, Antofagasta and Glencore rose 1-2 percent, while energy major Tullow Oil climbed 2 percent.

Banks gave up early gains to turn lower after reports that the Italian government was planning investor roadshows to support the bond market.

Givaudan shares fell 1.7 percent. After reporting a rise in Q3 group sales, the Swiss manufacturer of fragrance and flavor products said it aims to outpace market with 4-5 percent sales growth.

British advertising group WPP dropped 1.4 percent on news that Ford Motor Company has appointed another agency as its lead creative agency.

Insurer Aviva gained 1 percent as Mark Wilson quit as chief executive of the company.

Wood Group jumped 3 percent after securing a string of new midstream sector contracts across the U.S.

Greggs soared 5 percent. The bakery chain said that its total sales grew by 7.3 percent in the 13 weeks to 29 September 2018.

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