European markets to open lower after U.S., China take tough trade stances

European markets are set to open lower after the U.S. and China resumed tough stances in their ongoing trade war.

The FTSE 100 was seen around 24 points lower at 7,374 while the DAX was expected to drop around 48 points to 12,107. France’s CAC 40 was seen down around 23 points at 5,385 ,according to IG data.

U.S. President Donald Trump on Tuesday defended the use of tariffs as part of his trade strategy, while China vowed a tough response if Washington insists on escalating trade tensions as the world’s two largest economies attempt to negotiate a deal.

Asian stocks slid Wednesday after Wall Street ended a 6-day winning streak overnight, with China’s consumer price index rising 2.7% year-on-year. Hong Kong’s Hang Seng index led losses with a 1.59% drop by the afternoon as protests continued over the contentious Chinese extradition law.

Back in Europe, Reuters reported Tuesday that euro zone deputy finance ministers supported the European Commission’s view that disciplinary action is warranted against Italy over the country’s rising debt.

In corporate news, CNBC reported Tuesday night that French technology company Dassault Systemes is nearing a deal to acquire Medidata Solutions.

Meanwhile in the U.K., senior lawmaker Nicky Morgan, chair of the Treasury Select Committee, requested information from influential British stockbroker Hargreaves Lansdown about its links to the Woodford Equity Income fund, which was suspended last week amid a raft of bad stock calls and investor withdrawals.

Source: CNBC