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European stocks edges higher ahead of UK GDP, cautious trading to persist

Stocks in Europe were seen slightly higher during the pre-market session on Tuesday, without any real incentives to move.

Before the market open, futures for the UK's Footsie traded 0.49% higher at 6,485. Germany's DAX was 0.42% higher to 11,106, while in Paris, French CAC 40 futures rose 0.46% at 4,962 at the same time.

European indices were dragged down on Monday as Chinese equity markets declined most steeply since 2007, which caused a global sell-off. Moreover, traders don't want to be caught in heavy long positions ahead of the FOMC meeting. If the Fed hints at the September liftoff, stocks might decline further and investors had been rather liquidating their long positions.

Traders will focus mainly on today's GDP data for the second quarter from the UK, which is expected to improve from 0.4% to 0.7%, while the yearly change in the second quarter should decline from 2.9% to 2.6%.

 

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