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European Shares Seen Subdued As US Tariffs On China Looms

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European stocks look set to open lower on Friday as investors await fresh announcements regarding additional U.S. tariffs on Chinese goods as well the August U.S. jobs report for directional cues.

China has already warned of retaliation if the U.S. goes ahead with the fresh round of tariffs. The threat of auto tariffs is also back on the agenda as media reports suggest that Japan may be the next target of U.S. President Donald Trump's trade war.

Trump reportedly told a columnist for The Wall Street Journal that he was "still bothered by the terms of U.S. trade with Japan."

Meanwhile, the U.S. Labor Department is scheduled to release its more closely watched monthly jobs report today, which includes both public and private sector jobs.

U.S. employment is likely to increase by about 191,000 jobs in August after an increase of 157,000 jobs in July. The unemployment rate is expected to dip to 3.8 percent from 3.9 percent.

The U.S. dollar extended losses as U.S.-Canada talks on the North American Free Trade Agreement continue. Oil prices held steady after falling more than 1 percent on Thursday.

Asian stock markets hovered near 14-month lows as the U.S. and China move closer to imposing tariffs on billions of dollars of each other's goods.

Overnight, U.S. stocks closed mostly lower as technology companies continued to come under selling pressure and data on private sector employment and service sector activity painted a mixed picture of the world's largest economy.

The tech-heavy Nasdaq Composite shed 0.9 percent and the S&P 500 dropped 0.4 percent while the Dow inched up 0.1 percent.

European markets ended Thursday's session lower amid concerns over global trade and emerging market turbulence.

The pan-European Stoxx Europe 600 index gave up 0.6 percent. The German DAX lost 0.7 percent, France's CAC 40 index eased 0.3 percent and the U.K.'s FTSE 100 declined 0.9 percent.

by RTTNews Staff Writer

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