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European Shares Set To Open On Cautious Note


European stocks may open on a cautious note on Wednesday, with mounting signs of slowing global growth and concerns over a yet-unresolved Sino-U.S. trade dispute likely to keep investors on edge.

The downside, however, may remain limited after China's central bank pumped liquidity into the banking system through a new tool and the
U.S. Senate stepped off the sidelines to try to end the month-long government shutdown.

U.S. Senate leaders have agreed to vote today on competing proposals to reopen the government, the first sign of a possible way out of the shutdown.

Asian stocks are trading mixed as hopes that increased Chinese spending would stem an economic slowdown helped offset lingering uncertainty over the prospects for U.S.-China trade talks.

Media reports suggest that the United States has rejected Beijing's offer to hold a preparatory meeting in Washington ahead of next week's high-level trade talks.

White House adviser Lawrence Kudlow, however, stressed that the two sides were on track to have "very, very important" high-level talks at the end of the month that will be "determinative."

The yen extended losses against the dollar as export data fell short of expectations and the Bank of Japan kept monetary policy steady, as widely expected, and cut its price projections.

The Bank of Korea and the European Central Bank will announce their monetary policy decisions on Thursday.

Oil prices inched up marginally after closing sharply lower in the previous session on concerns about fuel demand.

U.S. stocks fell overnight, with renewed trade tensions, Brexit worries and global growth concerns keeping investors on the sidelines.

The Dow Jones Industrial Average dropped 1.2 percent, the tech-heavy Nasdaq Composite tumbled 1.9 percent and the S&P 500 declined 1.4 percent.

European markets ended firmly in the red on Tuesday after the IMF warned that the global economy is weakening at a "faster than expected" rate.

The pan-European Stoxx 600, the German DAX and France's CAC 40 index all dropped around 0.4 percent while the U.K.'s FTSE 100 declined 1 percent.

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