European stocks set for a weak open, as politics takes centre stage

European stocks are expected to open just below the flatline on Tuesday, on the back of a slightly positive, yet cautious tone seen in Asia-Pacific markets.

The FTSE 100 is seen 12 points lower at 7,029, the CAC 40 is set to open on a relatively flat note, down 13 points at 4,986, while the DAX is poised to start 24 points lower at 11,343, according to IG.

Tit-for-tat trade war talk between China and the U.S. is back on the agenda Tuesday, after President Donald Trump gave his views on the matter in a recent interview with the Wall Street Journal.

Speaking to the media outlet, the U.S. leader said that it was “highly unlikely” that the States would delay from a rise in tariff levels on $200 billion of Chinese goods, to 25 percent. He went onto suggest that a 10 percent tariff on laptops and iPhones imported from China could be inflicted.

Trump’s comments come just before a crucial meeting later this week. Leaders from the G-20, including Trump and China’s Xi Jinping, will congregate in Buenos Aires, Argentina to discuss a whole host of topics, at its latest summit. Investors will be looking for any fresh news out of the summit, with trade expected to be discussed.

Elsewhere, talk surrounding the U.K.’s departure from the European Union continues to rumble on. Over the weekend, leaders from the EU endorsed the Brexit withdrawal deal laid out by U.K. Prime Minister Theresa May, however, there are still hurdles ahead for May to overcome. The British leader now faces opposition from politicians in her home country, with Parliament expected to vote on the deal in two weeks on December 11.

Meanwhile, Italy’s government is seen as upholding its leading 2019 budget goals for now, as it awaits cost analysis on spending measures, according to Reuters. This comes after the news agency reported that the deficit target could be lowered, citing two government sources.

In markets overseas, stocks in Asia were mostly higher, despite the latest news surrounding the trade dispute between China and the U.S.. On Wall Street, stocks posted strong gains, on the back of a rebound seen in some tech stocks.

No major earnings or economic data are scheduled for today’s session.

Source: CNBC

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