European stocks are set to start Tuesday’s session in the red, as tensions between the world’s two largest economies put investors on edge.
Britain’s FTSE 100 index was seen falling 25 points to 6,110, Germany’s DAX down 38 points at 12,902 and France’s CAC lower by 14 points at 4,965, according to IG index data.
Market participants are monitoring the latest developments in the U.S.-China technology war. On Monday, President Donald Trump’s administration moved to further tighten restrictions on Huawei by effectively cutting the telecommunications giant off from chips made by foreign firms that have been produced with U.S. software or technology.
Meanwhile, investors are also monitoring U.S. pressure on Bytedance, the Chinese owner of popular social media app TikTok. Last week, President Trump signed an executive order giving the company more time to figure out a sale of its U.S. TikTok business.
Microsoft is currently seen as the frontrunner in the race to buy TikTok’s operations in the U.S., Canada, Australia and New Zealand assets. But that changed late Monday after it emerged that Larry Ellison’s Oracle was also in talks to acquire those units. Ellison is a known supporter of the president.
In earnings news, Maersk, the world’s largest container shipping firm, reports results on Tuesday. Norway’s $1 trillion sovereign wealth fund is also reporting second-quarter results.