European stocks to open higher despite China slowdown worries

European stocks are set to rise Monday, despite worries China’s economy is slowing amid a trade war with the U.S.

Britain’s FTSE 100 is seen climbing 6 points to 7,505, Germany’s DAX is set to rise 36 points to 12,351, and France’s CAC is expected to open 12 points higher at 5,580, according to IG index data.

Traders kept a close watch on the latest economic figures out of China. The country posted second-quarter figures on Monday that showed its economy grew 6.2% in the second-quarter, at its slowest pace in 27 years.

Still, China’s GDP (gross domestic product) growth was in line with expectations, and data for industrial production, retail sales and fixed-asset investment came in above analyst expectations.

Chinese stocks got a boost from the fresh data, with the Shanghai composite climbing 0.76% and the Shenzhen composite up 1.26%. MSCI’s broadest index of Asian shares outside Japan rose 0.26%.

Elsewhere, geopolitical tensions continued to rumble on in the background. Iranian leader Hassan Rouhani said Sunday that the country was ready to hold talks with the U.S., on the condition that Washington drops sanctions and returns to the 2015 nuclear deal.

Secretary of State Mike Pompeo poured cold water on Rouhani’s proposal, stating it would lead the Trump administration down a similar path to former President Barack Obama’s administration, which helped bring about the agreement.

Source: CNBC