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European Shares Set To Follow Wall Street Lower


European stocks may follow their U.S. and Asian peers lower on Wednesday as investors fret about trade tensions and slowing global growth.

Stocks across Asia moved lower amid concerns over the inversion in the yield curve and confusion surrounding the U.S.-China trade agreement struck between U.S. President Donald Trump and Chinese President Xi Jinping in Argentina.

Earlier today, the Chinese Commerce Ministry said that the weekend meeting between Trump and Xi was very successful and the working groups of the two states will actively hold consultations for 90 days in accordance with the agreement and the road map.

Investors paid little attention to upbeat China services data. The China Caixin Services PMI rose to 53.8 in November — it's highest in five months — as compared to 50.8 in October.

The U.S. dollar trimmed some of its recent losses while the pound held little changed after hitting a 17-month low on Tuesday as British Prime Minister Theresa May suffered a damaging setback in parliament on the Brexit deal.

Oil prices fell more than 1 percent in Asian trade on concerns over rising U.S. inventories and a global-selloff in equity markets amid worries over an economic slowdown.

Overnight, U.S. stocks tanked as the initial euphoria generated by a truce between the U.S. and China over trade evaporated and an inverted yield curve in bond markets signaled an economic slowdown.

The Dow tumbled 3.1 percent, the tech-heavy Nasdaq Composite plummeted 3.8 percent and the S&P 500 lost 3.2 percent.

European markets also fell on Tuesday as confusion prevailed about the substance of the U.S.-China trade cease-fire.

The pan-European Stoxx Europe 600 index gave up 0.8 percent. The German DAX dropped 1.1 percent, France's CAC 40 index shed 0.8 percent and the U.K.'s FTSE 100 declined 0.6 percent.

U.S. stock markets will remain closed today in observance of a national day of mourning for former President George H. W. Bush.

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