European markets brush off US-China tensions

European stocks are expected to start the week on a positive note Monday, brushing off tensions between the U.S. and China that have dampened investor sentiment in Asia.

London’s FTSE is seen opening 34 points higher at 6,054, Germany’s DAX is seen 66 points higher at 12,719, France’s CAC 40 is expected to open 25 points higher at 4,907 and Italy’s FTSE MIB up 135 points at 19,616, according to IG.

European markets look set to diverge from their Asian counterparts Monday as simmering U.S.-China tensions continue after U.S. President Donald Trump issued executive orders last week that are set to ban American use of WeChat and TikTok, taking effect from the middle of next month.

Following that, the Trump administration said it will impose a fresh round of sanctions on 11 individuals, including Hong Kong leader Carrie Lam for her role in overseeing and “implementing Beijing’s policies of suppression of freedom and democratic processes.”

Administration officials have also urged Trump to delist Chinese firms that trade on U.S. exchanges and fail to meet U.S. auditing requirements by Jan. 2022, Reuters reported last week. 

International investors are also keeping an eye on stimulus measures in the U.S.; Wall Street stock futures were mixed early Monday morning after Trump signed several executive orders aimed at extending coronavirus relief.

There are no major earnings or data releases in Europe Monday.

—CNBC’s Fred Imbert and Saheli Roy Choudhury contributed to this report.

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