European stocks are set to open higher Thursday morning, as markets consolidated steep losses from the previous session when heightened fears of an escalation to the U.S.-Sino trade war soured investor sentiment.

The FTSE 100 is seen 25 points higher at 7,615; the CAC is expected to open up around 10 points at 5,371 while the DAX is poised to start 40 points higher at 12,465, according to IG.

Market focus is largely attuned to the next potential steps in the tit-for-tat trade dispute. China has accused the U.S. of bullying and warned it could take further retaliatory measures against U.S. tariffs, although it was unclear exactly how Beijing would hit back.

In the previous session, global equities slumped after President Donald Trump threatened to impose tariffs on another $200 billion of Chinese goods.

Meanwhile, in Asia, stocks and commodities recovered overnight with China’s Shanghai Composite and Japan’s Nikkei both bouncing over 1 percent on Thursday. MSCI’s broadest index of Asia-Pacific shares, excluding Japan, was little changed.

Back in Europe, market players monitored the second and final day of talks between NATO leaders at the Brussels summit.

On the data front, the euro area is scheduled to publish industrial production data for May at around 10 a.m. London time.