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Nov 28, 2018

European Markets at Close Report: European markets close flat as investors wait on Fed, G-20 summit

David Reid, Sam Meredith, Alexandra Gibbs

European stocks were slightly higher Wednesday, as investors attempted to decipher conflicting signals over the potential for a reprieve in the U.S.-Sino trade dispute.
The pan-European Stoxx 600 closed provisionally up 0.04 percent during deals, with sectors and major bourses pointing in opposite directions.
FTSE FTSE 100 7008.88 -7.97 -0.11% 556460335
DAX DAX 11299.08 -10.03 -0.09% 51291639
CAC CAC 4989.08 5.93 0.12% 62986166
Europe's technology stocks led the gains Wednesday, up 0.65 percent amid renewed hopes of a breakthrough in simmering trade tensions between the world's two largest economies. Shares of Austrian chipmaker AMS surged near the top of the European benchmark on the news, up more than 4 percent by the early afternoon.
Looking at other stocks, France's EDF was also trading higher after President Emmanuel Macron said Wednesday that a decision regarding a possible increase of the state's stake in the company would take place next year. Shares of the Paris-listed stock rose 2.2 percent.
Meanwhile, Danone slumped towards the bottom of the index after Goldman Sachs downwardly revised its stock recommendation to "sell" from "neutral" Wednesday morning. Shares of the company slipped more than 2 percent on the news.

G-20 summit and Brexit

As the latest G-20 summit draws closer, investors continue to closely monitor simmering tensions between Washington and Beijing. Earlier this week, President Donald Trump told the Wall Street Journal that it was "highly unlikely" the U.S. would delay from increasing tariff levels to 25 percent on $200 billion of Chinese goods.
On Tuesday however, White House economic advisor Larry Kudlow appeared to ease fears, saying the U.S. administration had resumed discussions with China's government "at all levels."
Trump and Chinese premier Xi Jinping are expected to have dinner together when they meet at the G-20 summit in Argentina this weekend.
Sticking with the States, investors around the globe will be awaiting the latest comments from Federal Reserve Chairman Jerome Powell, who's scheduled to speakabout the central bank's framework surrounding financial stability later in the trading session.
Back in Europe, concerns surrounding Brexit continue to rumble on.
After leaders from the EU endorsed the Brexit withdrawal deal laid out by U.K. Prime Minister Theresa May, investors are now turning their attention to Britain's deeply divided Parliament.
May is urgently trying to rally enough lawmakers to support her Brexit deal — a daunting task given the broad criticism it has received. British lawmakers are scheduled to vote on the proposal on December 11.

Source: CNBC

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