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European equities fluctuate as geopolitical tensions continue

European equities fluctuate as geopolitical developments continue

European stock indexes fluctuated in early Tuesday trading, amid the melting geopolitical situation in the Middle East after the Saudi Aramco attack over the weekend.

As of 08:30 GMT, the Euro STOXX 600 fell 0.09 percent to 389.16.

France CAC 40 was 0.11 percent up to 5,608.67 and Britain’s FTSE 100 rose 0.1 percent to 7,328.65. In Germany, DAX descended 0.16 percent to 12,362.62 points. 

The sentiment remained cautious amid geopolitical uncertainty in the Middle East, thereby denting the appeal of risky assets, led by stocks.

While the United States indicated its intention to release crude reserves, but the continuing threat of military confrontations has kept investor confidence relatively low.

US President Donald Trump believes that Iran is responsible for the attacks on Saudi Aramco, which caused the crude prices to jump and consequently affect global equity markets.

Washington said earlier this week that if necessary, it would be withdrawn from the strategic oil reserves, the world's largest emergency crude oil supply, which includes roughly as much U.S. consumption in a month.

Concerning trade talks, the Office of the U.S. Trade Representative said the U.S.-China trade talks are scheduled to begin in Washington on Thursday, paving the way for high-level talks in October aimed at resolving the long trade war.

In the U.K., British Prime Minister Boris Johnson said that the Brexit deal was emerging, but President of the European Commission insisted that Johnson had not yet done anything to break the deadlock.

Johnson is also facing a legal challenge in the UK Supreme Court this week after Scottish judges ruled that his decision to suspend Parliament until October 14 was illegal.

A report released from Germany today showed that investor confidence improved to -22.5 in September from -44.1 in August, which was the lowest in nearly eight months.

Meanwhile, the European common currency rose against the U.S dollar by 0.22 percent at 1.1023, while the pound was 0.17 down at $1.2405.

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