European markets head for higher open, unfazed by U.S.-China tensions

  • London's FTSE is seen opening 48 points higher at 6,098, Germany's DAX up 112 points at 12,794, France's CAC 40 up 41 points at 4,946 and Italy's FTSE MIB up 182 points at 19,793, according to IG.
  • Investors appeared unfazed after reports said China had imposed sanctions on 11 U.S. citizens that included Senators Ted Cruz, Marco Rubio, Tom Cotton, Josh Hawley and Pat Toomey. 

European stocks are expected to open higher on Tuesday, tracking gains in Asia and the U.S. despite heightened tensions between the U.S. and China.

London's FTSE is seen opening 48 points higher at 6,098, Germany's DAX up 112 points at 12,794, France's CAC 40 up 41 points at 4,946 and Italy's FTSE MIB up 182 points at 19,793, according to IG.

Gains in European markets track those seen in Asia Pacific Tuesday and Wall Street Monday as investors appeared unfazed after reports said China had imposed sanctions on 11 U.S. citizens that included Senators Ted Cruz, Marco Rubio, Tom Cotton, Josh Hawley and Pat Toomey. 

The retaliatory move from Beijing followed after Washington last week said it will impose sanctions on 11 individuals including Hong Kong leader Carrie Lam for her role in overseeing and "implementing Beijing's policies of suppression of freedom and democratic processes."

The U.S. lawmakers sanctioned by Beijing have been vocal critics of a new security law that China imposed on Hong Kong, strengthening its hold over the city. 

On Monday, the 30-stock Dow Jones Industrial Average rose about 350 points in regular trading posting its seventh positive session in a row — its longest winning streak since September 2019. The S&P 500 gained 0.2%, sitting just 0.9% below its record high set in February. Meanwhile, the Nasdaq underperformed with a 0.4% loss as investors rotated out of some of the high-fliers. U.S. stock futures pointed to moderate gains when markets open on Tuesday. 

Another sign of U.S. tensions with China came on Monday when President Donald Trump urged Americans to stop politicizing the coronavirus, only to blame the outbreak in America on China moments later.

In other news, Lebanon's prime minister announced his government's resignation Monday, stating that the massive explosion that devastated large parts of the country's capital Beirut was the result of endemic corruption.

Earnings in Europe come from Raiffeisen Bank, Vestas Wind and Zalando and the latest U.K. unemployment data is due. 

– CNBC's Saheli Roy Choudhury and Berkely Lovelace contributed to this market report.

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