European stocks are seen opening narrowly mixed on Tuesday after U.S. President Joe Biden and China’s Xi Jinping held a summit meeting by video link amid tensions over trade, technology, human rights, Hong Kong and Taiwan.
Biden told Xi their goal should be to ensure competition “does not veer into conflict.” Xi said he was ready to “build consensus” to move bilateral relations forward.
Asian markets were lower in choppy trade as inflation concerns rise across the board. The recent outbreaks of COVID-19 cases in China and Europe also served to keep underlying sentiment cautious.
Gold held steady after hitting a five-month high in the previous session while oil prices rose in Asian trade amid worries over tight inventories.
The euro hovered near a 16-month low after European Central Bank President Christine Lagarde pushed back on calls and bets for tighter monetary policy, saying doing so now to rein in inflation could choke off the euro zone’s recovery.
Several Fed officials including Vice Chairman Richard Clarida and Fed Bank of San Francisco President Mary Daly will speak later in the week at various events.
U.S. President Joe Biden could decide this week whether to keep Jerome Powell as chair for a second term or elevate Fed Governor Lael Brainard to the post.
In economic releases, unemployment data from the U.K. and revised GDP figures from euro area are due later in the session, headlining a light day for the European economic news.
Across the Atlantic, reports on retail sales, trade prices and industrial production for October may provide additional information on the health of the economy.
The major U.S. averages ended marginally lower overnight as concerns over rising Treasury yields offset data showing strong growth in New York manufacturing activity in November.
European stocks eked out modest gains on Monday as investors weighed upbeat Chinese data against signs of rising COVID-19 infections across Europe.
The pan European Stoxx 600 gained 0.4 percent. The German DAX edged up 0.3 percent and France’s CAC 40 index rose half a percent while the U.K.’s FTSE 100 ended flat with a positive bias.
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