European markets head for choppy open as U.S.-China tensions rise

23 July,2020

London’s FTSE is seen opening 8 points lower at 6,198, Germany’s DAX is seen up 24 points at 13,124, France’s CAC 40 is expected to open 11 points higher at 5,049 and Italy’s FTSE MIB up 66 points at 20,615, according to IG.
 

European stocks are expected to open in mixed territory Thursday as concerns over rising U.S.-China tensions weigh on sentiment.

London’s FTSE is seen opening 8 points lower at 6,198, Germany’s DAX is seen up 24 points at 13,124, France’s CAC 40 is expected to open 11 points higher at 5,049 and Italy’s FTSE MIB up 66 points at 20,615, according to IG.

Tensions between China and the U.S. escalated this week after the U.S. claimed two Chinese hackers targeted American companies working on virus research and were stealing information from companies around the world, both for profit and on behalf of the Chinese government.

Then, the U.S. ordered the shutdown of China’s Houston consulate, claiming it was a necessary step to protect intellectual property and the data of private citizens. The move drew condemnation from China’s foreign ministry as it warned of firm countermeasures if the U.S. does not reverse its decision.

In other news, U.S. stocks also rallied toward the end of the trading session Wednesday after sources told CNBC that congressional Republicans are weighing an extension of watered-down federal unemployment benefits through the end of the year.

On Thursday, the Labor Department will release its latest report on weekly jobless claims. The weekly figures provide Wall Street with critical insight on how many Americans continue to collect unemployment benefits, known as continuing claims.

Meanwhile, Asia Pacific markets traded mixed on Thursday with Chinese mainland shares selling off and South Korea reporting a decline in second-quarter GDP, largely due to a steep fall in exports. 

Earnings come from Roche, Unilever, Dassault Systemes, Eurotunnel, Repsol, Covestro and Daimler on Thursday. On the data front Germany releases consumer confidence data and France business confidence data.