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European Markets Pull Back On Profit Taking

The European markets ended Tuesday's session in the red. Following yesterday's rally, investors took an opportunity to lock in some profits. Traders reacted positively to the trade war truce reached by President Donald Trump and Chinese President Xi Jinping at the G20 summit over the weekend.

However, uncertainty about whether the 90-day truce will give the U.S. and China enough time to reach a long-term trade agreement appears to have inspired traders to cash in on yesterday's strong upward move.

News that U.S. Trade Representative Robert Lighthizer, one of Trump's more hawkish advisors on trade with China, has been tapped to lead the negotiations has added to the skepticism.

The pan-European Stoxx Europe 600 index weakened 0.76 percent. The Euro Stoxx 50 index of eurozone blue chip stocks decreased 0.80 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.38 percent.

The DAX of Germany dropped 1.14 percent and the CAC of France fell 0.82 percent. The FTSE 100 of the U.K. declined 0.56 percent and the SMI of Switzerland finished lower by 0.24 percent.

In Paris, JCDecaux sank 2.94 percent after a brokerage downgrade.

In London, low-cost airline Ryanair Holdings fell 1.76 percent after reporting positive traffic figures for November.

Ferguson, a specialist distributor of plumbing and heating products, tumbled 4.30 percent despite the company posting solid first-quarter results.

IG Group Holdings sank 9.70 percent after the online trading company said it expects revenue in the first half to be around 6 percent lower than last year.

Danske Bank A/S slid 0.11 percent in Copenhagen. The bank said it has built a capital buffer of as much as $2.7bn (€2.38bn) to absorb potential fines in a money laundering case.

Eurozone producer price inflation accelerated further in October, defying expectations, figures from Eurostat showed Tuesday. Producer prices rose 4.9 percent year-on-year after a revised 4.6 percent in September. Economists had expected the rate to remain unchanged at September's original figure of 4.5 percent.

British construction sector expanded at the fastest pace in four months in November, thanks to an increase in new work and consequent gains in job creation, though Brexit concerns damped expectations for the months ahead.

The CIPS construction Purchasing Managers' Index climbed to 53.4 from 53.2 in October, survey data from IHS Markit showed on Tuesday. Economists had forecast a score of 52.5.

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