European stocks set for cautious open as recession fears cool

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European stocks are set to open mixed on Tuesday as investors digest a cooling of recession fears and rising hopes of monetary policy stimulus from central banks.

Finnish central bank governor Olli Rehn said on Monday that the European Central Bank was determined to act if the medium-term inflation outlook continues to miss its target of below but close to 2%.

This follows the German finance minster indicating over the weekend that the government is prepared to deploy fiscal stimulus to boost its ailing economy,People's Bank of China published new loan prime ratesInvestors stateside will be monitoring trade developments after the U.S. extended a reprieve permitting Chinese telecommunications giant Huawei to purchase components from U.S. companies to supply existing companies for 90 days.

Back in Europe, Italian politics remains a key focus as the government faces a no-confidence vote after Lega party leader Matteo SalviniReuters reported on Monday that Italy's opposition Democratic Party has held "good" initial talks with M5S over the prospect of a coalition, citing a PD source.as he seeks resolution to Britain's current impasse with the European Union over Brexit.

 

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Fears cool but reality stays

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