European shares are seen lower Thursday as investors closely monitor trade talks between the U.S. and China.
The FTSE 100 is seen off by 32 points at 7,520; the DAX is expected to open lower by 46 points at 12,764; and the CAC 40 is seen down by 20 points at 5,502; according to IG.
In Asian markets, equities traded mixed amid an upcoming meeting between U.S. and Chinese officials on trade Thursday and Friday. Treasury Secretary Steve Mnuchin, Commerce Secretary Wilbur Ross and Trade Representative Robert Lighthizer are among the U.S. officials participating in the meeting.
The talks are taking place after President Donald Trump proposed new tariffs on Chinese goods and Beijing responded with a set of duties that could potentially apply to U.S. products too. One of these products was soybeans. Media reports suggest that China has stopped buying soybeans from the U.S. amid the trade tensions.
Meanwhile, investors will also be focused on further earnings reports and incoming data. Solvay, Axa, Adidas, Bayer and Volkswagen are among the companies set to report Thursday morning
On the data front, there will be new passenger car registrations in Europe due at 7 a.m. London time and flash inflation numbers in the euro area at 10 a.m. London time. Any European data set is going to be followed closely amid fears of a potential economic slowdown in the region.
The European Commission will also publish its spring economic forecasts Thursday morning. The executive put forward on Wednesday a proposal for its next budget (to apply from 2021 to 2027).
However, this has been received with some criticism in some capitals, which are not willing to increase their contribution to the EU budget to make up for the U.K.’s exit.