European bourses looked set to begin trading negatively on Friday morning as investors worried about world trade ahead of this weekend’s G-7 meeting in Canada.
The Italian FTSE MIB was set to fall the furthest at the market open, and was down 144 points at 21,603. Meanwhile, the German DAX was expected to open 93 points lower at 12,717. The French CAC was 33 points in the red at 5,419, while the U.K. FTSE was set to begin trading negatively by 25 points at 6,685.
Investors’ attention will be focused on this weekend’s summit of G-7 world leaders in Quebec for developments in the ongoing saga of global trade tension. President Donald Trump‘s tariffs on steel and aluminium imports have caused upset among other G-7 members, including Canada and France.
While Trump may not mind being isolated, “we don’t mind being six, if needs be,” French President Emmanuel Macron told reporters ahead of the summit, according to Reuters. Trump accused Macron and Canadian Prime Minister Justin Trudeau via Twitter of “charging the U.S. massive tariffs and (creating) non-monetary barriers.”
Back in Europe, Thursday marked a tumultuous day for Brexit news. U.K. Prime Minister Theresa May revealed a backstop plan for the Irish border, and also said that the U.K. expects to have a permanent solution on customs arrangements after leaving the European Union implemented by the end of 2021 at the latest. But, foreign secretary — and leave campaigner — Boris Johnson was covertly recorded Wednesday saying that there may be a Brexit “meltdown,” according to the BBC.
German Finance Minister Olaf Scholz sought to calm views among Germans over fellow euro zone member Italy’s precarious economic situation. “I am very certain that Italy will not fail,” Scholz told broadcaster ZDF on Thursday night, as reported by Reuters.
In data releases, French and German industrial production figures for April are due to be published Friday morning, as well as the latter country’s balance of trade and imports for the same month.
Source: cnbc
European trade set to begin on the back foot, G-7 summit in focus