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European Shares Seen Opening Higher After Selloff


European stocks may open higher on Tuesday after ending deep in the red the previous day on concerns about global growth and trade.

Asian markets pared early losses to turn mixed as investors cheered reports that Chinese Vice Premier Liu, U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer have discussed trade issues despite a diplomatic row over the arrest of a senior Chinese businesswoman.

Gold held steady and the U.S. dollar rose while the British pound languished near a 20-month low as the U.K. faces Brexit without a deal.

U.S. crude oil futures held flat after ending down over 3 percent Monday on concerns about oil demand after China's trade growth slowed sharply in November.

The European Central Bank is likely to cap asset purchases at its final policy meeting of 2018 on Thursday.

Despite risks shifting to the downside amid new developments on Brexit and Italy's budget, many believe the central bank will maintain the risk assessment of "broadly balanced".

China is going to release industrial output and retail sales figures for November on Friday.

U.S. stocks recovered from sharp losses to close higher overnight. The Dow Jones Industrial Average fell as much as 507 points before recovering to finish the session up 34.31 points or 0.1 percent at 24,423.26.

The S&P 500 inched up 0.2 percent and the tech-heavy Nasdaq Composite added 0.7 percent.

European markets ended deep in the red on Monday as U.S.-China trade tensions simmered, oil resumed its sharp slide and U.K. Prime Minister Theresa May postponed a Parliamentary vote on Brexit deal.

The decision came after the PM failed to get support from enough of Tory MPs who said they were against the deal. More top Tories said they would vote against the deal, including May's former policy chief George Freeman MP.

The pan-European Stoxx Europe 600 index lost 1.9 percent. The German DAX and France's CAC 40 index both tumbled around 1.5 percent, while the U.K.'s FTSE 100 shed 0.8 percent.

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