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Jan 14 (Reuters) - European shares treaded water on Tuesday,
as investors awaited the signing of an initial trade truce to
end a prolonged U.S.-China tariff dispute, with attention also
turning to the fourth-quarter corporate earnings season.
The pan-European STOXX 600 index .STOXX fell 0.2% by 0812
GMT in its third straight day of declines.
The Phase 1 Sino-U.S. trade deal, due to be signed in
Washington on Wednesday, marks the first step in winding down
the prolonged and damaging trade war.
In further signs of goodwill, the U.S. Treasury Department
on Monday dropped China's designation as a currency manipulator,
while another report said China had pledged to increase buying
of U.S. manufactured goods over the next two years. European chemicals stocks .SX4P were the worst performing
sector on Tuesday, shedding about 0.8%.