European markets set for a mixed open on further trade concerns

European markets are set to open mixed Wednesday morning, as investor sentiment is dented by new tensions between the U.S. and China surrounding trade.

The FTSE 100 is seen down by 10 points at 7,263; the CAC is expected to open up by 8 points at 5,291; and the DAX is set to open higher by 13 points, according to IG.

Shares in Asia were broadly lower after news that China requested permission from the World Trade Organization to sanction the United States. This comes after President Donald Trump announced Friday that there could more trade tariffs against Beijing totalling $267 billion.

In the meantime, Chinese President Xi Jinping has promised to fight protectionism together with Russia.

Back in Europe, investors were also tracking Brexit news. Some members of the ruling Conservative Party have met to discuss how and when they could force Prime Minister Theresa May to resign, the BBC has reported.

European Commission President Jean-Claude Juncker is due to give his last State of the Union speech Wednesday morning. Apart from mentioning Brexit, he is set to present new ideas to deal with the migration crisis- a critical subject ahead of European elections next Spring.

In the corporate world, Hermes and Inditex are due to report their latest results. Elsewhere, Deutsche Bank and Commerzbank are reportedly increasingly open to merge. According to the German magazine De Spiegel, Commerzbank is ready to merge now, whereas Deutsche is unlikely to look for a merger in the next 18 months.

Source: CNBC