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European Shares To Open Mixed On Simmering Trade Worries

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European stocks are seen opening mixed on Wednesday as investors keep an eye on the intensifying U.S.-China trade conflict.

China is seeking permission from the World Trade Organization to impose sanctions on the U.S. next week for non-compliance related to a ruling regarding U.S. dumping duties.

In addition, media reports suggest that China is putting off accepting license applications from American businesses hoping to operate in the country, as the Trump administration prepares to impose tariffs on all $500 billion-plus imports from China.

Investors also keep an eye on the latest Brexit headlines as European Commission President Jean-Claude Juncker delivers his final State of the Union address to the European Parliament.

Asian markets hovered near 14-month lows after U.S. President Donald Trump told reporters on Tuesday that the U.S. was taking a tough stance with China.

The dollar index dipped against rivals in the wake of reports that Canada was ready to make concessions on its protected dairy sector in order to reach a trade agreement by the Oct. 1 deadline.

Oil extended gains from the previous session on concerns over Iranian sanctions and expectations of slower growth in U.S. crude oil production.

Meanwhile, Hurricane Florence continues to be a dangerous Category 4 storm as it heads toward the East Coast with an expected landfall early Friday,

Eurostat releases euro area industrial output data for July later in the day, with economists expecting production to rise 1 percent year-on-year after climbing 2.5 percent in June.

Across the Atlantic, trading sentiment may be swayed by reaction to reports on producer price inflation and the Federal Reserve's Beige Book.

Overnight, U.S. stocks shrugged off initial weakness to close higher as technology shares continued to recover from recent string of losses.

The Dow Jones Industrial Average rose 0.4 percent, the tech-heavy Nasdaq climbed 0.6 percent and the S&P 500 added 0.4 percent.

European markets ended Tuesday's session mostly lower on renewed trade worries.

The pan-European Stoxx Europe 600 index finished little changed with a negative bias. The German DAX and the U.K.'s FTSE 100 both edged down by 0.1 percent while France's CAC 40 index rose 0.3 percent.

by RTTNews Staff Writer

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