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Malaysia GDP Growth Improves Unexpectedly In Q2

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Malaysia's economic growth accelerated unexpectedly in the three months ended June, figures from the Department of Statistics showed Friday.

Gross domestic product advanced 5.8 percent year-over-year in the second quarter, faster than the 5.6 percent rise in the Mach quarter. Meanwhile, economists had expected the growth to ease to 5.4 percent.

During the fourth quarter of the previous year, the rate of expansion was 4.5 percent.

Malaysia's economy remained its uptrend momentum since second quarter of 2016.

On the expenditure side, private final consumption expenditure grew 7.1 percent annually in the second quarter and gross fixed capital formation rose by 4.1 percent.

Both exports and exports climbed by 9.6 percent and 10.7 percent, respectively.

Quarter-on-quarter, the seasonally adjusted GDP increased at a slower pace of 1.3 percent in the June quarter, following a 1.8 percent growth in the preceding three-month period.

Separately, the statistical office revealed that the current account surplus of the country rose to MYR 9.6 billion in the second quarter from MYR 5.3 billion in the first quarter.

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Canada Wholesale Trade Down 0.5% in June

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The value of Canadian wholesale trade dropped 0.5 percent in June following eight straight months of growth, weighed down by lower sales of food and motor vehicles, according to Statistics Canada.

Five of the seven sub sectors, representing 73 percent of wholesale trade, reported declines as sales dropped in six provinces. In volume terms, sales fell 0.7 percent.

The food, beverage and tobacco subsector dropped 1.0 percent. Motor vehicles and parts dealers were also down 1.0 percent.

Sales in the western energy-producing province of Alberta tumbled 3.7 percent, its first decline in nine months.

Inventories reported their 10th increase in 11 months, climbing 0.6 percent to hit a record peak on the back of a 3.2 percent growth in the personal and household goods subsector.

The Canadian dollar remains strong against the U.S. dollar despite the sharp drop in oil prices. Last week, the loonie hit a two-week peak against the greenback pulled down by political uncertainty, after Canadian data revealed a rise in the rate of underlying inflation while oil prices increased.

In Canada, investors will also pay attention to the release of the retail sales data due on Tuesday.

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European Economics Preview: Germany's ZEW Economic Confidence Data Due

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Economic confidence from Germany and public sector finance from the UK are due on Tuesday, headlining a light day for the European economic news.

At 2.00 am ET, Switzerland's foreign trade data for July is due. The trade surplus totaled CHF 2.8 billion in June. In the meantime, Statistics Finland releases unemployment data for July.

At 4.30 am ET, the Office for National Statistics is slated to issue UK public sector finance data. The budget deficit is forecast to narrow to GBP 1 billion in July from GBP 6.9 billion in June.

At 5.00 am ET, Germany's ZEW economic confidence survey results are due. The economic confidence index is seen at 15 in August versus 17.5 in July.

At 6.00 am ET, the Confederation of British Industry is scheduled to release Industrial Trends survey data. The order book balance is forecast to fall to 8 percent in August from 10 percent in July.

At 8.00 am ET, Hungary's central bank is set to announce the outcome of its monetary policy meeting. Economists expect the bank to hold its key rate at 0.90 percent.

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Japan Manufacturing PMI Climbs To 52.8 In August - Nikkei

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Economic confidence from Germany and public sector finance from the UK are due on Tuesday, headlining a light day for the European economic news.

The manufacturing sector in Japan continued to expand in August, and at a faster pace, the latest survey from Nikkei revealed on Wednesday with a Manufacturing PMI score of 52.8.

That's up from 52.1 in July, and it moves farther above the boom-or-bust line of 50 that separates expansion from contraction.

Individually, output, new orders, new export orders, employment, input prices and stocks of purchase all expanded at an accelerated rate.

Future expectations remained positive, although the optimism was weaker.

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Bitcoin Recover after Shortly Sliding into Correction Territory

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Bitcoin and Bitcoin Cash prices regained footing on Tuesday, while its peer ethereum continued to be pressured, further sliding from recent record-highs.

Bitcoin rallied by 2 percent on the day at $4,139.87 after falling to as low as $3,687 in morning trade. During session lows, the digital currency has briefly fallen into correction territory. This is defined by analysts as a 10 percent or steeper decline from a recent record level in an asset.

The cryptocurrency skidded to $3,687 earlier on the day, denoting a 16.7 percent drop from its mid-August record of closing above $4,425, according to Coindesk.com. At its current trading levels, it is 8 percent lower from its peak level.

The ethereum's ether token declined, climbing down from a recent peak, falling 0.5 percent at $322.33 on the day. It hit a record high in mid-June at around $380 per token. Industry experts tried to downplay the decline across digital currencies, as the drop is mainly seen as due to profit-taking.

The trend in bitcoin price comes as the industry found a resolution for the so-called scaling issues, enabling bigger transaction sized in the blockchain network.

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BRAZIL: Ibovespa Rises On Privatizations, Auctions And TLP Approval

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The Brazilian government announcement on new privatizations, concessions and auctions under the Investment Partnerships Program (PPI), in addition to the approval of the Long-Term Rate (TLP) in a Congress' joint committee, made the Ibovespa high (+0.66%), closing at 70,477.63 points. That was the highest closing level of Ibovespa, the benchmark stock index in Brazil, since January 19, 2011 (70,058 points).

In addition to announcing its intention to privatize Eletrobras, the Mint and Lotteries were included on the privatization list today. The Brazilian government is also expected to grant 14 airports, 15 port terminals, highways and to auction oil exploration areas and energy distributors.

Earlier, the market was already optimistic for the approval of the provisional measure that deals with the Long Term Rate (TLP). The measure is expected to help in reducing the country's structural interest rate and the functioning of Brazil's National Bank for Economic and Social Development (BNDES).

Among the highlights of today were the shares of miners and steelmakers, such as Vale (VALE +2.13%), Gerdau Metal?rgica (GOAU4 +7.42%) and Usiminas (USIM5 +3.85%).

Meanwhile, the locally traded U.S. dollar closed down 1.1%, at R$ 3.1440 in the sale, influenced by TLP's approval.

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Wall Street Declines after Trump Threatens Government Shutdown

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U.S. equities dropped on Wednesday after President Donald Trump said he is willing to let the government shutdown if Congress fails to fund a Mexico border wall.

The Dow Jones industrial average dropped 0.40 percent to 21,812.09, as Boeing and Johnson & Johnson contributed the most losses. The S&P 500 slipped 0.35 percent to 2,444.04, as consumer discretionary and industrials led losses.

The Nasdaq composite shed 0.30 percent to close at 6,278.41, with huge tech stocks like Amazon and Facebook retreating.

The CBOE Volatility index, a broadly-followed measure of market anxiety, rose 6.0 points to 12.03, its first increase in four days.

The consumer discretionary closed 0.8 percent lower, pulled down by a 3.71 percent loss in Lowe's Companies following weak results and forecast.

Home Depot fell 0.54 percent to $149.10.

Wal-Mart climbed earlier in the session after it announced a partnership with Google to offer voice shopping.

Advertising company Omnicom fell over 6.94 percent to $72.71 and Interpublic Group tumbled 6.32 percent to $72.71 after WPP trimmed its sales forecast after consumer goods giants tightened spending.

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Japan Inflation Climbs 0.4% On Year In July

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Overall consumer prices in Japan advanced 0.4 percent on year in July, the Ministry of Internal Affairs and Communications said on Friday - in line with expectations and unchanged from the June reading.

Core inflation, which excludes food prices, advanced an annual 0.5 percent - again unchanged and matching forecasts.

Individually, prices for fuel climbed 4.3 percent on year, while food prices gained 0.6 percent.

On a monthly basis, overall CPI and core CPI were both flat. Clothing prices fell 2.8 percent on month, and furniture prices dipped 0.4 percent.

Overall consumer prices for the Tokyo region - considered a leading indicator for the nationwide trend - climbed 0.5 percent on year in August. That exceeded expectations for 0.3 percent and was up from 0.1 percent in July.

Core CPI for Tokyo gained 0.4 percent, beating forecasts for 0.3 percent and up from 0.2 percent in the previous month.

Individually, fuel prices spiked 5.7 percent on year and medical care jumped 1.7 percent.

On a monthly basis, overall and core CPI for Tokyo both added 0.2 percent. Recreation costs climbed 2.3 percent on month and medical care gained 1.8 percent.

Also on Friday, the Bank of Japan said that producer prices were up 0.6 percent on year in July. That was beneath expectations for 0.8 percent and down from the downwardly revised 0.7 percent gain in June (originally 0.8 percent).

Individually, prices were up for leasing rental and employment, while they were down for advertising.

On a monthly basis, producer prices gained 0.3 percent after falling 0.2 percent a month earlier.

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Wall Street Ends Marginally Lower in Volatile Trading Session

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U.S. stock markets ended slightly lower following a session of swinging between gains and losses as investors diverted their attention on a symposium of central bankers in Jackson Hole, Wyoming.

The markets received a brief increase of energy in afternoon trade following House Speaker Paul Ryan's statement, in which he voiced his confidence in pushing through with a tax-revamp package this 2017 and lifting the debt ceiling.

The Nasdaq Composite Index edged down 7.08 points, or 0.1%, at 6,271.33. The S&P 500 fell 5.07 points, or 0.2%, to end at 2,438.97, with 10 out of the 11 primary S&P 500 sectors closing lower. Consumer staples finished lower by 1.3% and industrials were down 0.4%

Meanwhile, the Dow Jones Industrial Average settled 28.69 points, or 0.1% lower, at 21,783.40. Amazon's announcement that it would lower prices of Whole Foods' products after the merger sent down the shares of other players in the grocery sector, with shares of Wal-Mart Stores Inc. posting the biggest decline.

The switching between small gains and losses in stocks comes amid a seasonally low-volume period, making trading susceptible to swings. Stocks saw their lightest volume day of the year on Wednesday, with only 5 billion shares traded. This is significantly below the year-to-date median of 6.54 billion.

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BRAZIL: Ibovespa Falls As Traders Turn Cautious Ahead Of Data

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Ibovespa, the benchmark stock market index in Brazil, closed slightly down (-0.08%), at 71,017.19 points Monday, with traders turning cautious before the release of data regarding job creation in the United States and Brazil's Gross Domestic Product (GDP).

Also, a possible new criminal complaint against the Brazilian President Michel Temer kept some investors out of the game.

According to H.Commcor's chief operating officer, Ari Santos, the market players expect that any potential complaint against Temer will come out in the next few days before the attorney general Rodrigo Janot leaves office.

"Today's decline is not a profit-taking move consistent with recent highs, but marks the cautiousness of a complicated start to a week that promises many important indicators, such as the GDP of the United States and Brazil," said Pedro Galdi, an analyst at Magliano Consultora.

In the business sector, bank stocks fell, while Vale's shares rose despite the slowdown in the price of iron ore abroad. Bradesco's preferred shares lost 1.53%, Ita? Unibanco's shares fell 0.87%, and Banco do Brasil's common shares dropped 0.93%. Vale's preferred shares rose 1.56%.

Meanwhile, the locally traded U.S. dollar rose 0.25%, closing at R$ 3.1640, with investors waiting for relevant economic data. Possible news on the local political front has also collaborated to keep the currency around R$ 3.16.

For Tuesday, Santos says, the market trend depends on the possibility of a new complaint against Temer. Galdi sees chances for a slight rise, inflated by the vote favorable to the final text of the Long-Term Rate (TLP) institution in the Senate.

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Wall Street Flat as Tropical Storm Crippled Texas

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Shares of oil refinery firms climbed on Monday after Tropical Storm Harvey forced refineries in Houston to shut down.

The Dow Jones industrial average dropped 0.02 percent to 21,808.40, as insurance giant Travelers contributed the most to the losses. The S&P 500 fluctuated between gains and losses before ending 0.05 percent higher at 2,444.24, as health care led six sectors up. The Nasdaq composite jumped 0.28 percent to 6,283.02.

Harvey, a hurricane that was downgraded to a tropical storm, ravaged Houston and other parts of Texas over the weekend, with over 30 inches of rain falling in some parts in just 48 hours. Houston is home to several major refineries in the U.S.

Oil majors Exxon and Chevron fell 0.3 percent and 0.4 percent respectively. Valero Energy, Phillips 66 and Marathon Petroleum all finished higher.

The S&P 500 financial sector was the biggest weight on the index, with a 0.5 percent decline.

Home Depot, which climbed 1.2 percent, and other companies likely to benefit from rebuilding efforts in the region.

Insurer Travelers weighed the most on the Dow with a 2.6 percent decline to $123.23, as Allstate dropped 1.5 percent to $90.6 while investors priced in the likely impact of Harvey on the sector.

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MEXICO: Country Will Seek 'Plan B' If Trump Pulls U.S. Out Of NAFTA

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Threats by U.S. President Donald Trump to withdraw the United States from the North American Free Trade Agreement (NAFTA) during renegotiations are encouraging Mexico to create a "Plan B," said the Mexican Secretary of Economy, Ildefonso Guajardo Villarreal.

According to him, Mexico needs to be prepared to the possibility of the United States walking away from the NAFTA deal.

"The best thing Mexico can do is to have an alternate, clear, pragmatic, plan to tackle something that is not our goal, but that may be the result of a process that does not go ahead. We need to be prepared for a scenario in which the United States or its president leaves the NAFTA," Villarreal said in an interview with the El Economista newspaper.

According to him, Mexico must advance in its commercial diversification with South American countries, such as Brazil and Argentina, with the European Union, the Pacific Alliance, and other Asian countries.

Trump said there was little chance that the NAFTA renegotiation, currently underway between Mexico, Canada, and the U.S., would be successful. The president attributed the potential failure of the negotiations to Mexico, claiming that its Southern neighbor would be hampering a new agreement.

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Japan Industrial Production Slides 0.8% In July

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Industrial output in Japan fell a seasonally adjusted 0.8 percent on month in July, the Ministry of Economy, Trade and Industry said on Thursday.

That missed forecasts for a decline of 0.3 percent following the 2.2 percent spike in June.

On a yearly basis, industrial production climbed 4.7 percent - again missing forecasts for 5.2 percent and down from 5.5 percent in the previous month.

Upon the release of the data, the METI maintained its assessment of industrial production saying was that it shows signs of picking up.

Industries that were down in July included business oriented machinery, electrical machinery and chemicals - while electronic parts, ceramics and petroleum products were up.

Shipments were down 0.7 percent on month and up 4.1 percent on year.

Industries that were down included business oriented machinery, electrical machinery and iron and steel - while electronic parts, petroleum products and transport equipment were up.

Inventories were down 1.2 percent on month and 2.4 percent on year.

Industries that saw decreased production included transport equipment, petroleum products and electrical machinery.

Industries that were up included non-ferrous metals, chemicals and electronic parts.

According to the survey of production forecast, industrial output is expected to rise 6.0 percent in August and fall 3.1 percent in September.

Industries that are expected to contribute to the increase in August include business oriented machinery, transport equipment and electrical machinery.

Industries expected to contribute to the decline in September include business oriented machinery, communications equipment and electronic parts.

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Wall Street Advanced as S&P 500 Hits 4-Day Winning Streak

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U.S. stocks climbed on Wednesday following stronger-than-expected U.S. economic growth which counterbalanced concerns on heightened tensions between the United States and North Korea as well as uncertainty in the wake of Hurricane Harvey.

The Dow Jones industrial average rose 0.12 percent to 21,892.43, as Goldman Sachs contributed the most gains to the index.

The S&P 500 rose 0.46 percent to end at 2,457.59, with information technology leading eight sectors higher. The S&P also marked a four-day winning streak, its longest since late May.

The tech-heavy Nasdaq composite advanced 1.05 percent to 6,368.31, leading other major U.S. indexes, and touched a three-day winning streak.

Netflix lifted the Nasdaq higher as it climbed over three percent after Bernstein analysts said that Disney pulling its content from the platform will not impede the stock performance of Netflix.

Apple also contributed to the Nasdaq's gains, gaining 0.2 percent to notch a record peak earlier in the session.

Other major stocks in the tech sector also advanced, including Facebook and Google-parent Alphabet. The sector is by far the best-performing sector in 2017, gaining over 20 percent.

Among shares in corporate news, Tax preparation service provider H&R Block dropped 8.3 percent to $26.81 after it posted a larger-than-expected loss. Chipmaker Analog Devices rose 5.2 percent at $83.72 after its quarterly earnings and forecast surpassed expectations.

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S&P Maintains Sweden's Sovereign Ratings

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Standard & Poor's maintained the sovereign ratings of Sweden at 'AAA' with 'stable' outlook and upgraded Lithuania's rating outlook to positive.

The agency said Sweden benefits from high institutional effectiveness, substantial fiscal buffers, and ample monetary policy flexibility.

The stable outlook reflects the assessment that over the next two years, Sweden's key fiscal, external, economic, and monetary metrics will remain among the strongest of the 131 sovereigns rated by S&P. Despite political fragmentation, S&P expects the Swedish government to maintain fiscal discipline and to pay down public debt. The transparent institutional setting and robust economic fundamentals cushion uncertainties from prospects of snap elections or re-formation of government, the agency said.

According to S&P, Sweden's booming economy is set to motor on at a strong pace through 2017-2018, while high household debt continues to loom as a key risk.

As growth in house prices has exceeded that of disposable income and inflation, a house price correction could lead to a marked reduction in consumption, hampering the Sweden's economic performance and burdening the financial sector, S&P said.

In a separate communique, S&P said the outlook on Lithuania's rating was revised to positive from stable on expectations that Lithuania's economy will post strong balanced growth over the medium term.

The 'A-' ratings on Lithuania reflect the country's economic prospects over the next two years, although it has one of the lowest GDP per capita ratios in the Eurozone.

S&P expects Lithuania's open economy to perform well, fueled by firming exports, rising consumption and strong investment activity, supported by new EU financing cycle.

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Stock Futures Drop on North Korea Tensions

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U.S. equity index futures fell at the open on Sunday, with stock traders being cautious after news that North Korea had raised diplomatic tensions by conducting what it claimed was a test of a hydrogen bomb for a long-range missile.

On Sunday, Pyongyang conducted its sixth and most powerful nuclear test, in what appears to be a tense escalation of North Korea's stand-off with the United States and its allies.

S&P 500 e-mini futures dropped 0.36 percent as electronic trading resumed on Sunday evening. The decline revealed that traders are cautious but not completely threatened by news on North Korea. Volumes were higher than average, as 30,2000 contracts changed hands.

The 10-year Treasury futures were 0.16 percent higher on the day.

“Traders have been burned by overreacting to the news out of North Korea multiple times over the last month – most recently after missiles were shot over Japanese territory,” according to Nicholas Young, a partner at Conventus Capital LLC in New York. “Unless we get a real response from the U.S., the market seems desensitized to these items.”

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Australia Current Account Deficit Balloons To A$9.562 Billion

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Australia had a current account deficit of A$9.562 billion in the second quarter of 2017, the Australian Bureau of Statistics said on Tuesday.

That missed forecasts for a shortfall of A$7.5 billion following the downwardly revised A$4.754 billion deficit in the first quarter (originally -A$3.1 billion).

Net exports of GDP came in at 0.3, topping expectations for a flat reading following the 0.7 decline in the three months prior.

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European Shares Drop on Jitters over North Korea Nuclear Test

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News of North Korea's recent nuclear test pulled down European shares but failed to cause a huge selloff as investors appear to be used to geopolitical tensions.

The pan-European STOXX 600 index and euro zone blue chips were both down 0.5 percent and all major bourses, from the UK's FTSE to France's CAC 40 posted losses from 0.3 to 0.8 percent.

Uncertainty over the response to the recent North Korean test unnerved investors, leading to a jump in stock market volatility. Europe's volatility index rose 1.5 points.

No sector in Europe closed in positive territory, stocks in the financial services industry had the worst day, slipping one percent.

Advances in safe-haven assets, including gold, sent miners Randgold and Fresnillo higher by two and 2.9 percent respectively, while Polymetal acquired support from a JPMorgan upgrade to “neutral” from “underweight”.

Technology stocks were one of the worst performers, closing 0.9 percent lower as a sector overall. Shares of Gemalto plunged to the bottom off the benchmark as Deutsche Bank, Kepler Cheuvreux, and Invest Securities trimmed their target price for the Dutch digital security company. Its shares closed ten percent lower.

Pharma heavyweight Novartis dropped one percent as the group said its chief executive, Joseph Jimenez, would retire in 2018, and chief drug developer Vasant Narasimhan, 41, would run the company from February.

UK specialty chemicals company Victrex rose 8.6 percent, notching a record peak after reducing its full-year tax guidance and saying Jakob Sigurdsson was joining the company as CEO-designate. Its shares were the highest advancers on the STOXX.

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Singapore PMI Climbs To 53.2 In August - Nikkei

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Singapore's private sector continued to expand in August, and at a faster rate, the latest survey from Nikkei revealed on Wednesday with a PMI score of 53.2.

That's up from 51.3 in July, and it moves farther above the boom-or-bust line of 50 that separates expansion from contraction.

Individually, there were faster rises in both output and total new orders, although lower employment persisted.

Firms cut prices despite rising cost inflation.

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European Shares Close Lower, Pressured by Financials and N. Korea Tensions

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European shares edged lower on Tuesday, pulled down by declines in the heavyweight financial sector as jitters on North Korea remained and caution increased ahead of the European Central Bank policy meeting later this week.

The pan-European STOXX 600 slipped 0.1 percent while euro zone blue chips fell 0.3 percent. In major bourses, Germany's DAX rose 0.18 percent, the U.K.'s FTSE 100 dropped 0.52 percent while France's CAC fell 0.34 percent.

Banks reported the largest sector loss, with several Spanish and Italian lenders near the bottom of the sector's benchmark. Euro zone banks were an outstanding decliner, falling 1.6 percent to their lowest level in nearly 10 weeks, with the sector back in focus ahead of the ECB meeting.

Shares in Banco Santander, BNP Paribas, UniCredit and Deutsche Bank all down between 1.7 and 1.9 percent. This comes despite an upgrade from UBS strategists of European lenders to overweight from neutral. They claim that the recent firming in the euro have made them more cautious on U.S.-exposed stocks but more upbeat on domestically exposed firms.

Energy stocks were among the top-gaining sectors, higher by 0.56 percent with oil prices rebounding.

Health stocks also gained, led by Germany's Merck KGAA, climbing 2.4 percent, which announced it was weighing on selling its consumer health business.

French telecom company Orange and U.K. consumer goods firm Reckitt Benckiser finished near the bottom of the STOXX 600, lower by two percent and 2.7 percent respectively.

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