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European Shares Set To Open On Tepid Note

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European stocks look set to open lower on Monday as mixed signals from U.S.-China trade talks coupled with flaring tensions in Hong Kong dented investors' appetite for risk.

New doubts emerged about the partial U.S-China trade deal after U.S. President Donald Trump denied agreeing to roll back tariffs on China. Trump also said that talks with China had moved more slowly than he would have liked and that China very much wants to make a deal.

Elsewhere in Hong Kong, the city's political crisis escalated again after a police officer shot at masked protestors early Monday morning, leaving a boy in emergency surgery.

Asian stocks are trading mixed, with Chinese and Hong Kong markets pacing the declines, as inflation data from China brought slowdown fears to the fore.

While China's consumer price index grew at its fastest pace in about eight years, a measure of producer prices fell the most in more than three years in October, underscoring the problem of moderating demand.

Japan's machinery orders fell for a third straight month in September, raising doubts over whether the recent strength in capital goods shipments would last.

Looking ahead, quarterly national accounts data from the U.K. is due later in the session, headlining a light day for the European economic news.

The dollar held near multi-week highs while oil prices slipped on renewed caution over the prospects of a U.S.-China trade deal.

U.S. stocks inched up on Friday to reach record closing highs as a measure of consumer sentiment showed improvement and Walt Disney's third-quarter earnings beat forecasts, helping offset comments by President Trump that there had been incorrect reports about U.S. willingness to lift tariffs on China.

The Dow Jones Industrial Average inched up marginally and the S&P 500 rose 0.3 percent while the tech-heavy Nasdaq Composite gained half a percent.

European markets fell on Friday after a report from Reuters said the idea of rolling back tariffs faced fierce internal opposition from Trump's advisers.

The pan European Stoxx 600 eased 0.3 percent. The German DAX dropped half a percent, France's CAC 40 index edged down marginally and the U.K.'s FTSE 100 slid 0.6 percent.

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