European stocks seen higher ahead of key Fed meeting

The U.S. central bank is widely expected to lower borrowing costs this week by a quarter point for the first time since the height of the financial crisis.

Meanwhile, U.S. and Chinese negotiators are set to resume face-to-face trade talks on Tuesday, though expectations of a significant breakthrough this week remain low. Stocks in Asia edged higher in Tuesday afternoon trade as investors await developments from the talks, while the Bank of Japan also opted to keep monetary policy steady.

Back in Europe, the pound hit a 28-month low on Monday as fears of the U.K. leaving the European Union without a deal escalated. Prime Minister Boris Johnson said the current divorce deal was dead and cautioned that unless the EU agreed to renegotiate, Britain would leave without a deal on October 31. The pound is currently trading around $1.2129.

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