* Investors wary as trade deadline draws closer
* Pound slips as projected Conservative majority shrinks
* Saudi Aramco shares up 10% after record IPO
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Updates prices throughout)
By Tom Wilson
LONDON, Dec 11 (Reuters) - European shares fell on Wednesday
as the deadline approached for new U.S. tariffs on Chinese goods
and investors awaited the outcome of major central bank policy
meetings.
U.S. President Donald Trump has only days to decide whether
to impose tariffs on nearly $160 billion in Chinese goods, a
move that would exacerbate the long-running trade war.
The White House's top economic and trade advisers are
expected to meet in coming days with Trump over the decision, a
source told Reuters, though a final decision has not been made.
Amid the uncertainty over trade - the overriding focus for
investors through the year - the Euro STOXX 600 .STOXX fell,
then recovered, and was last down 0.1%.
The British pound GBP=D3 , a high-flier of late, dropped
from a seven-month peak after an opinion poll projected a
narrower-than-expected victory for the Conservative party in the
British election on Thursday. The election is set to decide how
the UK will leave the European Union, if at all.
The MSCI world equity index .MIWD00000PUS , which tracks
shares in 47 countries, eked out a small gain. Wall Street
futures ESc1 indicated U.S. stocks would open unchanged.
Investors said an initial trade deal was still likely, since
it would benefit both Washington and Beijing.
"We still believe that the phase-one deal is something that
is convenient for both the presidents on the political and
economic side," Alessia Berardi, senior economist at Amundi. "If
the tariffs will be implemented it will be a disaster in the
short term."
In the Middle East, Saudi Aramco 2222.SE shares surged
10% above their initial public offering price in their first day
of trading. That gave the state-controlled oil company a market
value of about $1.88 trillion, making it the world's most
valuable listed company. MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS had earlier risen 0.5%. Hong Kong's Hang Seng
.HSI and Australia's S&P/ASX 200 .AXJO led gains with 0.7%
rises.
Investors also focused on meetings by major central banks.
At its policy meeting and outlook for the economy, the U.S.
Federal Reserve is widely expected to hold rates steady, with
investors watching for changes to its view on the economy and
its 2% growth forecast for next year. The Fed's statement is due at 1900 GMT.
A surprise to the upside when U.S. inflation data are
released at 1330 GMT would further reduce chances for rate cuts
next year.
The European Central Bank will hold its first meeting and
news conference with Christine Lagarde as president on Thursday.
"Everything is positioned for the two major central banks to
stay accommodative," Berardi said.
STERLING RALLY STOPS
The pound GBP=D3 fell as low as $1.3107 after a YouGov
poll showed the ruling Conservatives heading towards a slimmer
majority than was forecast a fortnight ago. YouGov's research
director said the results showed a hung parliament was possible.
Sterling later recovered some of its losses after dropping
1% from its high on Tuesday, when investors were more confident
of a Conservative victory that they expect will end uncertainty
over Britain's exit from the EU. It was last trading flat at
$1.3151.
Elsewhere among currencies, Sweden's crown jumped to
eight-month highs after strong inflation increased the
likelihood it would end negative interest rates.
The euro was last down 0.8% against the crown at 10.454
EURSEK=D3 , leaving the Swedish currency at its strongest since
late April.
The dollar rose 0.1% against a basket of six major
currencies .DXY to 97.515.
In commodities, Brent futures LCOc1 fell by 52 cents, or
0.8%, to $63.82 per barrel by late morning, after industry data
showed an unexpected build-up in crude inventories in the United
States.
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