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European Shares Seen Up On Tariff Delay Hopes

asian markets1 11dec19

European stocks are likely to open on a positive note Wednesday after reports suggested that Washington is laying the groundwork for a delay in the latest tariffs on China, due to take effect on Sunday.

However, White House economic adviser Larry Kudlow said the "tariffs are still on the table". Analysts say that a trade deal might have to wait until after the U.S. presidential election in November 2020.

Meanwhile, growth concerns resurfaced after the Asian Development Bank (ADB) lowered its growth forecasts for developing Asia this year and the next, saying persistent trade tensions have taken a toll on the region.

Asian markets remain mostly higher as investors looked ahead to the U.S. Federal Reserve's interest-rate decision later today and a similar decision Thursday by the European Central Bank under Christine Lagarde's leadership.

Investors are also watching Britain's parliamentary election Thursday. According to a YouGov forecast on Tuesday, the Tories are expected to win 339 of the 650 seats in the House of Commons, Labour 231, the Scottish National Party 41, and the Liberal Democrats 15.

The major U.S. averages slid around 0.1 percent overnight as investors waited to see whether China and the U.S. will strike a so-called phased one trade deal this week.

The downside was capped after House Democrats announced an agreement on President Donald Trump's trade deal with Canada and Mexico.

European stocks fell on Tuesday, with uncertainty surrounding U.S.-China trade talks and the U.K. general election keeping investors nervous.

The pan European Stoxx 600 eased 0.3 percent. The German DAX and the U.K.'s FTSE 100 slid around 0.3 percent while France's CAC 40 index rose 0.2 percent.

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