European stocks are set to open mixed on Tuesday, with underlying sentiment likely to remain fragile amid escalating trade tensions between the world’s two largest economies.
U.S. President Donald Trump told CNBC he stands ready to hit China with more tariffs on at least $300bn worth of goods if Chinese President Xi Jinping does not attend a planned meeting at the G-20 summit in Osaka, Japan on June 28 and 29.
However, Beijing has not formally confirmed any plans or provided any details of the high-stakes meeting.
On the data front, the U.K. economy is set to contract in the second quarter after stockbuilding ahead of the original Brexit departure date boosted growth in the first quarter, the National Institute of Economic and Social Research said in a report. The think tank forecast a 0.2 percent contraction in GDP in the second quarter.
Unemployment from the U.K. and investor confidence figures from euro area are due later in the session, headlining a light day for the European economic news.
Eurozone Sentix investor confidence data is also due. Economists expect the investor sentiment index to drop to 2.5 in June from 5.3 in May.
ECB President Mario Draghi speaks at a conference in Frankfurt on Wednesday.
Euro-area finance ministers will be meeting in Luxembourg Thursday, with financial penalties for Italy over its debt load and the euro-area budget on the agenda.
Ten candidates were nominated in the contest to succeed Theresa May as Conservative Party leader and prime minister, the party’s 1922 Committee said on Monday. The first round of voting will take place on Thursday.
Asian markets are modestly higher and the dollar index held largely steady while oil prices rose after falling sharply on Monday amid reports that major producers Saudi Arabia and Russia are yet to agree on extending an output-cutting deal.
U.S. stocks rose overnight after the U.S. reached an agreement with Mexico on tariffs.
The Dow Jones Industrial Average rose 0.3 percent to extend gains for a sixth straight session and the S&P 500 gained half a percent while the tech-heavy Nasdaq Composite surged 1.1 percent.
European markets ended Monday’s session higher as trade tensions eased and Chinese exports data topped forecasts.
The pan European Stoxx 600 inched up 0.2 percent. France’s CAC 40 index rose 0.3 percent and the U.K.’s FTSE 100 added 0.6 percent while the German markets were closed for a holiday.