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July 10 (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.