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European Shares Seen Mixed As Trade Talks Stall

asian mixed 20may19 lt

European stocks may open on a mixed note Monday amid the U.S.-China trade pessimism.

While U.S. President Donald Trump sought to blame China for backing out of a nearly completed trade deal, a spokesperson for China's Ministry of Commerce called the Trump administration's latest tariffs hikes "bullying behavior."

China is sending signals that it's in no hurry to resume trade talks with the U.S.

Alphabet Inc's Google has reportedly suspended business with Huawei that requires the transfer of hardware and software products except those covered by open source licenses.

In economic news, Bank of England Governor Mark Carney testifies to Parliament about the May inflation report on Tuesday, while the minutes of April meeting of the European Central Bank will be out on Thursday.

The U.S. economic calendar for this week is relatively light, with traders likely to keep an eye on reports on new and existing home sales and durable goods orders as well as the minutes of the latest Federal Reserve meeting.

Asian stock markets are trading mixed and China's offshore yuan strengthened, while oil prices jumped more than 1 percent after Saudi Energy Minister Khalid al-Falih indicated there was consensus among OPEC and allied oil producers to continue limiting supplies.

Meanwhile, U.S. President Donald Trump issued a new threat to Iran, tweeting that conflict in the Middle East would spell the "official end" of Iran.

China's central bank on Sunday that it would maintain the stability of its yuan within a reasonable and balanced range.

The Australian dollar rallied against the greenback after a surprise election victory by the Liberal party.The Indian rupee also surged after exit poll results suggested another term for the ruling NDA.

U.S. stocks fluctuated before closing lower on Friday after CNBC reported that the next round of U.S.-China negotiations are "in flux" because it is unclear what the two sides would discuss.

The Dow Jones Industrial Average dropped 0.4 percent, the tech-heavy Nasdaq Composite tumbled 1 percent and the S&P 500 declined 0.6 percent.

European markets ended off their day's lows on Friday to snap a three-session winning streak as Brexit talks collapsed and the U.S. delayed tariffs on European auto imports for up to six months.

The pan European Stoxx 600 shed 0.4 percent. The German DAX slid 0.6 percent, France's CAC 40 index eased 0.2 percent and the U.K.'s FTSE 100 slipped 0.1 percent.

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