European Shares Set To Open On Tepid Note

stockmarkets aug16 24jul20

European stocks may open lower on Friday amid rising U.S.-China tensions after China said it had revoked the license for the U.S. consulate in the southwestern city of Chengdu, in retaliation for the closure of the Chinese consulate in Houston following allegations of spying.

A sell-off in tech stocks on Wall Street overnight may also weigh on sentiment.

The Nasdaq Composite fell more than 2 percent overnight alongside losses in a number of large-cap tech stocks, as Microsoft's strong earnings results failed to enthuse investors and a tech watchdog group reported that Apple Inc is under investigation in multiple states for deceptive trade practices.

Asian stocks lost ground, with Chinese markets falling nearly 3 percent amid heightened risk aversion.

The dollar hovered near a two-year low, while gold headed for its best week in three months. Oil edged higher after falling about 2 percent Thursday on concerns over excess supply in the market and the outlook for energy demand.

Flash Purchasing Managers' survey data from euro area and retail sales figures from the U.K. are due later in the session, headlining a busy day for the European economic news.

Across the Atlantic, a report on new home sales and the latest earnings news may sway sentiment.

U.S. stocks fell sharply overnight as investors reacted to rising coronavirus cases, mixed earnings updates, disappointing jobless claims figures and ongoing debate in Congress over the next stimulus bill.

The Dow Jones Industrial average fell 1.3 percent, the tech-heavy Nasdaq Composite index lost 2.3 percent and the S&P 500 declined 1.2 percent.

European stocks ended largely unchanged on Thursday as worrying U.S. jobless claims and Eurozone consumer confidence data offset strong regional earnings reports. Investors also monitored news on trade talks between Britain and the EU.

The pan European Stoxx 600 edged up 0.1 percent. The German DAX finished marginally lower and France's CAC 40 index slid 0.1 percent while the U.K.'s FTSE 100 inched up 0.1 percent.

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