* European shares struggle after Asia ekes out gain
* Fed, ECB meet later this week
* Sterling shines again before Thursday's election
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Tommy Wilkes
LONDON, Dec 9 (Reuters) - European stocks fell on Monday as
worries about a Chinese economic slowdown and the U.S.-China
trade war outweighed Friday's strong U.S. jobs data, in a quiet
start to trading before several big events later in the week.
The Federal Reserve meets on Wednesday and new European
Central Bank chief Christine Lagarde holds her first policy
meeting on Thursday, which will also see a parliamentary
election in Britain, with the results due on Friday.
However, at the forefront of most investors' minds is an
impending Dec. 15 deadline for the United States to impose a new
round of tariffs on China.
Top White House economic adviser Larry Kudlow said on Friday
that the deadline was still in place to impose a new round of
tariffs on Chinese consumer goods, but he also said President
Donald Trump likes where trade talks with China are going.
"If we see Donald Trump decide not to delay tariffs, that
would lead to a risk-off reaction in markets," said Nomura
currency strategist Jordan Rochester.
"We don't expect tariffs to go into effect as the talks are
ongoing but the trade talks are the main driver this week," he
said, adding he did not expect any "fireworks" from the central
bank meetings.
European shares slipped. The Euro STOXX 600 .STOXX was
down marginally, while the German DAX .GDAXI dropped 0.1
percent. France's CAC 40 .FCHI shed 0.2 percent and the FTSE
100 .FTSE was flat.
That followed small gains in Asia, where Japan's benchmark
Nikkei .N225 added 0.33 percent while MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS gained 0.15
percent.
Markets have been largely working on the assumption that the
planned Dec. 15 tariffs, which cover several consumer products
such as cellphones and toys, will be dropped or at least
postponed, given that Washington and Beijing agreed in October
to work on a trade deal.
CHINESE SHIVERS
China's exports shrank for the fourth consecutive month in
November, sending shivers through a market already concerned
about damage being done to global demand by the trade war, but
growth in imports may be a sign that Beijing's stimulus steps
are helping to stoke demand. The U.S. dollar, which bounced on Friday after data showed
U.S. job growth increased in November by the most in 10 months,
was down marginally against a basket of currencies .DXY and
the euro, at $1.1064 EUR=EBS . The strong labour market data in the United States helped
power stock markets and further allay fears about a slowdown in
the world's largest economy.
"This economy is still climbing and shattering the records
for longevity," said Chris Rupkey, chief financial economist at
MUFG Union Bank. "Right now, the clouds of recession still
remain well offshore despite troubled economies elsewhere in the
world and a trade war."
The dollar was also down 0.1 percent against the Japanese
yen at 108.51 yen JPY=EBS .
Elsewhere in currency markets the British pound made more
gains, rising to a new 7-month high of $1.3180 GBP=D3 as
investors raised their bets on a Conservative Party victory -
and a ruling majority in parliament - in Thursday's general
election.
Government bond markets were little moved, as investors
awaited the central bank meetings. Oil prices weakened after the disappointing Chinese trade
data.
Brent futures LCOc1 were down 0.56 percent, at $64.03 per
barrel after gaining about 3 percent last week on the news that
OPEC and its allies would deepen output cuts.
West Texas Intermediate oil futures CLc1 lost 0.66 percent
to $58.90 a barrel, having risen about 7 percent last week on
the prospects for lower production from 'OPEC+'.