European markets were set for a mixed open Tuesday after U.S. President Donald Trump told CNBC that immediate tariffs would be imposed on a further $300 billion of Chinese goods if President Xi does not attend this month’s G-20 meeting.
The FTSE 100 was seen around 19 points higher at 7,386 and the DAX looked set to climb 76 points to 12,121. The CAC 40 was expected to edge around 5 points lower to 5,377.
Trump is set to meet with Xi at the G-20 summit, which is scheduled for June 28-29 in Osaka, Japan. The leaders of 19 nations and the European Union are expected to attend, as trade tensions approach boiling point worldwide.
Asian stocks rose Tuesday afternoon as markets shrugged off the threat, the Shenzhen component leading gains with a 2.91% jump. Markets had rallied worldwide Monday after the U.S. suspended its proposed tariffs on Mexican imports.
Back in Europe, the race to replace U.K. Prime Minister Theresa May has begun, with ten candidates in the running for the vacated Conservative Party leadership position. Investors will also keep an eye on U.K. employment figures for March and April, set for release at 9.30 a.m. BST.
Meanwhile, Italian Deputy Prime Minister Luigi Di Maio said Monday that the government should introduce a minimum hourly wage of 9 euros to help underpaid workers, and Greek Prime Minister Alexis Tsipras told the country’s president on Monday that a snap election should be held to avert a protracted period of political uncertainty.
In corporate news, Swiss drugmaker Roche’s $4.3 billion takeover of U.S. gene therapy specialist Spark Therapeutics has been postponed again due to regulatory scrutiny, while Reuters reported Monday that the Italian government is set to again extend the deadline to rescue loss-making airline Alitalia after failing to secure investors’ backing.