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European Shares Seen Opening Flat In Cautious Trade


European stocks look set to open on a steady note Tuesday as investors bet on
an interest rate cut by U.S. central bank later this month.

However, underlying sentiment is likely to be cautious as investors await
U.S. retail sales data due later in the day and more corporate earnings
results to gauge the health of the world's largest economy.

Trading on Wall Street later in the day may also be impacted by reaction to reports on U.S. industrial production and homebuilder confidence as well as earnings from Goldman Sachs, Johnson & Johnson, JPMorgan and Wells Fargo, which will unveil their quarterly results before the start of trading.

Closer home, labor market statistics from the U.K. and economic sentiment figures from Germany are due later in the session, headlining a light day for the European economic news.

On the trade front, U.S. Treasury Secretary Steven Mnuchin said on Monday that top U.S. and Chinese trade negotiators are due to speak by telephone in the coming days, but no face-to-face talks have been scheduled yet.

Asian markets are trading mixed in lackluster trade, a day after China reported its weakest quarter of economic growth in 27 years.

Gold prices held steady while the British pound struggled near a six-month low against the dollar amid persistent uncertainty over Brexit.

Oil steadied after falling in the previous session as more production facilities returned to operation in the U.S. Gulf after Hurricane Barry swept through over the weekend.

Overnight, U.S. stocks edged up marginally to notch a fresh record close as Citigroup reported second quarter results that beat analyst estimates on both the top and bottom lines.

The Dow Jones Industrial Average inched up 0.1 percent and the tech-heavy Nasdaq Composite rose 0.2 percent while the S&P 500 ended flat with a positive bias.

European markets advanced on Monday as a slew of Chinese data proved to be a mixed bag and Iran said it's ready to hold talks with the U.S. if Washington drops sanctions and returns to the 2015 nuclear deal.

The pan European Stoxx 600 rose 0.2 percent. The German DAX rose half a percent, the U.K.'s FTSE 100 gained 0.3 percent and France's CAC 40 index edged up 0.1 percent.

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