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European shares slip ahead of U.S. Fed chief Powell's testimony

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European shares slip ahead of U.S. Fed chief Powell's testimony
FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, July 5, 2019. REUTERS/Staff   -   Copyright  STAFF(Reuters)
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(Reuters) – European shares dipped in early trading on Wednesday ahead of U.S. Federal Reserve Chair Jerome Powell’s two-day testimony where investors will closely watch for signs of an interest-rate cut later this month.

Powell is scheduled to give his semi-annual monetary policy testimony to Congress at 1400 GMT, and investors see a worrying lack of inflation globally as one reason for Powell to sound suitably dovish.

The pan-European shares index <.STOXX> fell 0.2% and was on course to extend losses to a fourth day, with Spain’s IBEX <.IBEX> underperforming with a 0.4% loss.

Stocks with exposure to Mexico led losses in Madrid with BBVA <BBVA.MC>, Iberdrola <IBE.MC> and Telefonica <VIVT4.SA> down between 0.6% and 0.8%, after a shock resignation of Mexican Finance Minister Carlos Urzua on Tuesday rattled Mexican markets.

(Reporting by Susan Mathew in Bengaluru; Editing by Arun Koyyur)

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