European markets seen mixed as new trade tariffs quell rally

European markets were seen mixed Monday morning as China and the U.S. kicked off a new round of trade tariffs on one another’s imports, despite signs that talks could resume in September.

The FTSE 100 was expected to edge around 5 points higher at 7,212, the DAX was seen around 19 points lower at 11,920 and the CAC 40 was set to tick around 5 points lower to 5,475, according to IG data.

The latest round of tariffs sees the U.S. imposing 15% tariffs on a variety of Chinese goods, including footwear, smart watches and flat-panel televisions, while China targeted U.S. crude with 5% duties.

Stocks in Asia were mixed Monday afternoon, with mainland Chinese shares leading gains while shares in Hong Kong and Japan slipped into the red.

The U.S. stock and bonds markets are closed for Labor Day.

Back in Europe, U.K. lawmakers will bring forward legislation seeking to block the possibility of Britain leaving the European Union without a deal. The main opposition Labour party will publish its legislation plan on Tuesday, but the Conservative-led government has so far declined to guarantee it will abide by the new law.

Meanwhile Sky News has reported that Conservative lawmakers have been threatened with expulsion from the party if they join efforts to block a no-deal Brexit.

Prime Minister Boris Johnson last week announced that parliament would be suspended for five weeks as of September 9, restricting time for anti no-deal lawmakers to stop no-deal. The move has been met with nationwide protests which continued over the weekend.

In corporate news, lawyers for 98,000 Volkswagen owners in the U.S. which gave overstated fuel efficiency figures will ask a judge for $26 million in attorney’s fees and costs, according to Reuters.

Source: CNBC