European Shares Seen Up As Focus Shifts To US-Canada Trade Talks

European stocks look set to open on a positive note Wednesday as the dollar rebounded from a four-week low hit overnight after the release of upbeat consumer confidence data and oil prices inched up amid falling supplies from Iran ahead of looming U.S. sanctions.

Asian stocks are broadly higher, although underlying sentiment remained cautious as investors closely watched developments in the Sino-U.S. trade dispute.

The public has until September 5 to comment on the latest U.S. proposal targeting tariffs on another $200 billion of Chinese goods. The new measures are expected to take effect later in the month.

Meanwhile, with a deal with Mexico out of the way, U.S. and Canadian officials are set for high-stakes trade talks to complete a North American Free Trade Agreement rewrite.

In economic releases, U.K. shop prices increased for the first time in more than five years in August, the British Retail Consortium said. Shop prices edged up 0.1 percent in August, following a 0.3 percent drop in July. This broke a deflation cycle of 63 months.

France will publish a second estimate of second-quarter gross domestic product later today. Across the Atlantic, A revised reading on second quarter U.S. GDP and a report on pending home sales in July may attract investor attention.

Overnight, U.S. stocks finished marginally higher after a measure of U.S. consumer confidence surged to near 18-year high in August and Canadian negotiators started high-stakes talks to preserve a three-nation pact.

The Dow rose 0.1 percent, while the tech-heavy Nasdaq Composite gained 0.2 percent and the S&P 500 inched up marginally to set record highs for the third consecutive session.

European markets ended Tuesday’s session on a mixed note after trade optimism lifted the euro to a one-month high against the dollar.

The pan-European Stoxx Europe 600 index finished marginally lower. The German DAX slid 0.1 percent, while France’s CAC 40 index edged up 0.1 percent and the U.K.’s FTSE 100 added half a percent.

by RTTNews Staff Writer

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