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European Shares Seen Mixed Ahead Of U.S. Tariff Deadline

asianmarkets 112014 10dec19

European stocks look set to open on a cautious note Tuesday ahead of the
Dec. 15 deadline for the next round of U.S. tariffs on Chinese imports.

Washington is due to impose new tariff hikes on $160 billion of Chinese goods if the two sides fail to reach an accord.

China's assistant minister of commerce Ren Hongbin said Beijing is hoping negotiations can conclude on a trade deal before the new tariffs kick in this weekend.

Markets also await meetings by the Federal Reserve and the European Central Bank as well as the outcome of Britain's snap election Thursday for directional cues.

A two-day meeting of the Federal Reserve concludes on Wednesday, with economists expecting no change in economic forecasts and the interest rate outlook.

Similarly, no surprises are expected on Thursday from the European Central Bank under the leadership of previous IMF head Christine Lagarde.

Britons will head to the polls on Thursday for a snap general election, which is expected to break an impasse over departure from the EU and London's future relationship with the trade bloc.

Asian markets are trading mixed and the dollar eased slightly while oil prices slipped for a second straight session.

In economic releases, China's consumer price inflation accelerated to the highest since early 2012 in November as disruption to pork supply pushed up food inflation, data from the National Bureau of Statistics showed.

Another report from NBS showed that producer prices declined for the fifth consecutive month in November.

Germany's ZEW economic confidence survey data is due later in the session. Economists expect the confidence index to improve to 3.5 in December from -2.1 in November.

The Office for National Statistics is slated to issue the U.K. monthly GDP, industrial production and foreign trade data. GDP is forecast to remain flat sequentially in October, following a 0.1 percent drop in September.

U.S. stocks fell modestly overnight to snap a three-day winning run ahead of monetary policy updates from the Fed and the ECB as well as the looming Dec. 15 deadline for new tariffs on China.

Rising tensions between the United States and North Korea also weighed on markets after North Korea conducted a "very important test" at a long-range missile launch site.

The Dow Jones Industrial Average and the tech-heavy Nasdaq Composite shed around 0.4 percent while the S&P 500 eased 0.3 percent.

European markets closed lower on Monday as weak exports data from China raised worries about global economic slowdown.

The pan European Stoxx 600 gave up 0.2 percent. The German DAX dropped half a percent, France's CAC 40 index declined 0.6 percent and the U.K.'s FTSE 100 slipped 0.1 percent.

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