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London/Hong Kong — European shares slipped on Tuesday as simmering political tensions between the US and China escalated, while concerns over a deadlock on further US fiscal stimulus drove the dollar towards a two-year low against its rivals.

A weaker opening for the region’s blue-chip euro Stoxx 50 weighed on Asian stocks with MSCI’s broadest index of Asia-Pacific shares excluding Japan giving up early gains to trade flat...

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