European stocks to open higher after Germany’s Merkel strikes migration deal

European stocks are set to open slightly higher Tuesday morning, though underlying sentiment could be soured by anxiety over global trade frictions.

The FTSE 100 is seen little changed at 7,557; the CAC is expected to open up around 12 points at 5,285 while the DAX is poised to start 30 points higher at 12,272, according to IG.

Market focus is largely attuned to the ongoing Sino-U.S. trade row, with heightened fears the dispute could soon derail a rare period of synchronized global growth.

Investors are nervous ahead of a July 6 deadline when the U.S. is set to impose tariffs on $34 billion worth of goods from China. Beijing is then expected to respond with charges of its own on U.S. goods.

Chinese stocks were hit hard as turbulence gripped equity markets in Asia on Tuesday. MSCI’s broadest index of Asia-Pacific shares, excluding Japan, fell around 1.4 percent.

Back in Europe, German Chancellor Angela Merkel reached a deal to build border camps for asylum seekers and agreed to tighten the country’s border with Austria in a last-ditch effort to save her government.

Berlin’s interior minister had threated to resign over the issue of migration but agreed to stay on after hours of talks with Merkel.

On the data front, the euro area is expected to publish retail sales data for June at around 10 a.m. London time.

Source: CNBC