BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks look set to open a tad higher on Wednesday, with easing of U.S.-China trade tensions and a stronger dollar likely to underpin sentiment.
The U.S. dollar hovered near a four-week high on the back of higher U.S. Treasury yields as investors awaited the release of minutes from the latest Federal Reserve policy meeting, due out later in the day.
Asian stock markets traded cautiously and the Japanese yen held largely steady after Japanese exports fell for a fifth straight month in April, in a sign of weakness in external demand. On the positive side, the country's core private-sector machinery orders rose for the second straight month.
The British pound is hovering near a four-month low after British Prime Minister Theresa May set out what she called a 'new' Brexit deal for Britain's departure from the EU.
The deal offers the option of a parliamentary vote on holding a second referendum on her deal if it clears the Commons next month.
Oil prices fell modestly after the American Petroleum Institute reported another surprise build in crude oil inventories.
On the data front, consumer and producer prices as well as public sector finance reports from the U.K. are due later in the day, headlining a light day for the European economic news.
At 3.00 am ET, European Central Bank President Mario Draghi is set to speak at an event organized by the ECB in Frankfurt, Germany.
U.S. stocks rose overnight, with tech shares leading the surge after the Commerce Department temporarily eased trade restrictions on Chinese tech giant Huawei and Google said it would continue to work with Huawei over the next 90 days.
The Dow Jones Industrial Average climbed 0.8 percent, the Nasdaq Composite advanced 1.1 percent and the S&P 50 added 0.9 percent.
European stocks also closed higher on Tuesday as tensions eased slightly in the escalating trade war between the U.S. and China.
The pan-European Stoxx 600 added half a percent. The German DAX gained 0.9 percent, France's CAC 40 index rose half a percent and the U.K.'s FTSE 100 inched up 0.3 percent.
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