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European equities rise amid trade deal hopes, Brexit vote eyed

European equities rise amid trade deal hopes

European equities recovered earlier their losses on Tuesday amid hopes of a trade agreement between China and United States, where markets will keep their eyed open on a critical Brexit vote later in the day.

As of 08:19 GMT, the Euro STOXX 600 rose 0.02 percent to 394.03, France CAC 40 was 0.089 percent up at 5,653.36 and Germany’s DAX ascended 0.19 percent to 12,772.19. In Britain, FTSE 100 increased 0.48 percent to 7,198.34.

U.S. President Donald Trump said on Monday that China has begun buying U.S. agricultural products, and is working toward ending the trade war, while the president's economic adviser said that tariff increases on China could be eliminated in December, or parties made progress.

Now, there are rising hopes that the world’s biggest economies would end their trade dispute that lasted more than one year.

Investors will also focus on European companies and banks announcing their financial results of the third quarter of this year.

Sterling falls amid Brexit developments

The pound fell against the U.S dollar during Tuesday’s trading to reach $1.2925, dropping below the critical level of $1.30, the highest in nearly five months.

Against the euro, the pound retreated taking the EURGBP pair up  to 0.8604, but the pound is still hovering near its highest level since May 8.

Opposition leader Jeremy Corbyn tweeted that Labour opposes the government’s Brexit deal, and will call for a second referendum during today’s vote.

Later in the day, the UK Parliament will vote on whether to support the European Union withdrawal agreement bill.

if Boris Johnson loses the vote, most likely there will be no agreement before the deadline of October 31. 

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