Silvia Amaro, Ryan Browne
European Markets: FTSE, GDAXI, FCHI, IBEX
Market sentiment is mostly affected by news overnight that the U.S. will impose further duties on China.
President Donald Trump decided to raise current tariffs from 10% on $200 billion of Chinese goods to 25% on Friday. In a Twitter post, he also threatened to impose extra 25% levies on an additional $325 billion of Chinese goods “shortly”.
Chinese markets plunged more than 6% on the news.
Officials in Beijing are considering whether to back out of trade talks with the U.S. that were scheduled for this week. Both countries had indicated over the last weeks that they had made progress in their trade discussions.
In the corporate world, ThyssenKrupp said it is still looking to reach an agreement with European antitrust regulators on a planned joint venture with Tata Steel, Reuters reported.
Elsewhere, the European Commission is reportedly set to launch a formal investigation into Apple in the next few weeks. According to the Financial Times, this is on the back of a complaint filled by Spotify earlier this year.
“In total, the PMIs tell a by now familiar story. Manufacturing is still under pressure from falling new orders and production, which is eating into work backlogs and employment growth. In services, however, business conditions are much better even though growth in output and new orders have slowed in the past six-to-12 months,” analysts at Pantheon Macron said in a note.