European Shares Seen Lower After Trump’s Tariff Threat
European stocks may open lower on Monday, as an escalation in the ongoing U.S.-China trade war looks imminent.
Asian markets remain broadly lower after a report showed China’s trade surplus with the U.S. widened to a record in August, adding to the trade tensions.
Apple’s key suppliers dipped after U.S. President Donald Trump called for Apple to move production from China to the U.S.
The dollar held largely steady against a basket of currencies, thanks to strong U.S. jobs data and Trump’s latest threat to impose tariffs on virtually all imports from China.
Despite opposition from American companies, Trump on Friday threatened to impose tariffs on additional $267 billion, in addition to the proposed 25 percent duty to be levied on $200 billion of Chinese goods.
China’s Commerce Ministry has already warned it would be forced to roll out necessary retaliatory measures if the U.S. imposes any new tariffs.
Oil prices inched up in Asian trade after three straight days of losses.
On the data front, monthly GDP estimate as well as industrial production and foreign trade figures from the U.K. are due later in the session, headlining a light day for the European economic news.
Investors also await the monetary policy meetings from the Bank of England and the European Central Bank this week.
U.S. stocks fluctuated before closing modestly lower on Friday as Trump ramped up his trade rhetoric and a strong jobs report for August bolstered the prospects for further rate hikes.
The Dow and the Nasdaq Composite slid around 0.3 percent while the S&P 500 inched down 0.2 percent.
European markets ended Friday’s session mixed on tariff concerns as a public comment period ended on new U.S. tariffs against China.
The pan-European Stoxx Europe 600 index inched up 0.1 percent. The German DAX closed marginally higher and France’s CAC 40 index edged up by 0.2 percent while the U.K.’s FTSE 100 shed 0.6 percent.
by RTTNews Staff Writer
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