- The latest round of tariffs sees the U.S. imposing 15% tariffs on a variety of Chinese goods, including footwear, smart watches and flat-panel televisions, while China targeted U.S. crude with 5% duties.
- The U.K.’s main opposition Labour party will publish its legislation plan to block a no-deal Brexit on Tuesday, but the Conservative-led government has so far declined to guarantee it will abide by the new law.
European stocks traded higher Monday morning as China and the U.S. kicked off a new round of trade tariffs on one another’s imports, despite signs that talks could resume in September.
The pan-European Stoxx 600 climbed 0.3% after the opening bell, basic resources jumping 0.6% to lead gains as all sectors and major bourses traded in positive territory.
The latest round of tariffs sees the U.S. imposing 15% tariffs on a variety of Chinese goods, including footwear, smart watches and flat-panel televisions, while China targeted U.S. crude with 5% duties.
Stocks in Asia were mixed Monday afternoon, with mainland Chinese shares leading gains while shares in Hong Kong and Japan slipped into the red.
The U.S. stock and bonds markets are closed for Labor Day.
Back in Europe, U.K. lawmakers will bring forward legislation seeking to block the possibility of Britain leaving the European Union without a deal. The main opposition Labour party will publish its legislation plan on Tuesday, but the Conservative-led government has so far declined to guarantee it will abide by the new law.
Meanwhile Sky News has reported that Conservative lawmakers have been threatened with expulsion from the party if they join efforts to block a no-deal Brexit.
Prime Minister Boris Johnson last week announced that parliament would be suspended for five weeks as of September 9, restricting time for anti no-deal lawmakers to stop no-deal. The move has been met with nationwide protests which continued over the weekend.
Investors are also monitoring Italian politics as discussions over the formation of a coalition government comprising the anti-establishment Five Star Movement (M5S) and center-left Democratic Party (PD) continue.
In corporate news, lawyers for 98,000 Volkswagen owners in the U.S. which gave overstated fuel efficiency figures will ask a judge for $26 million in attorney’s fees and costs, according to Reuters.
Stocks on the move
Shares of Luxembourg-based commercial real estate company AroundTown climbed 2.8% in early trade, after rival TLG Immobilien disclosed a 1 billion euro ($1.1 billion) stake in the company.
British software giant Micro Focus also gained 3.2% to top the Stoxx 600 as investors looked to capitalize on the stock’s low valuation following a heavy plunge last week.
At the other end of the European blue chip index, British retailer Marks & Spencer slipped 1.9% and is expected to drop out of the FTSE 100 this week for the first time in the 35-year history of the index.