Stoxx 600, DAX, CAC, FTSE

LONDON — European stocks are expected to open mostly higher as the new trading week begins and traders are closely monitoring the developing trade dispute between the United States and China.

of england FTSE German index opens just below the horizontal line DAX France increased by 0.3 percent CAC 40 Italy up 0.26% FTSE MIB According to IG data, it increased by 0.54%.

The positive start to the week follows the sharp close of regional stock markets last week after US President Donald Trump threatened China with a new wave of tariff increases to “fiscally counter” China’s new export controls on rare earth minerals.

China controls 70% of global supply of rare earth mineralsIt is critical for high-tech industries including automobiles, defense and semiconductors.

Trump suggested in Sunday’s Truth Social post that he might not follow through on his threat, but said trade relations with China “everything will be fine.”

China on Sunday said “we are not afraid” of a trade war with the US, and China’s spokesman Ministry of Commerce He accused Trump of “double standards” by promising to impose 100 percent additional tariffs on Chinese imports on Friday.

Asia-Pacific markets fell overnight as investors remained alert to the possible impact of renewed Sino-US trade tensions. Meanwhile, U.S. stock futures rose Sunday night, rebounding from Friday’s selloff after Trump attempted to reassure markets that there would be no new trade war.

There are no major earnings or data releases on Monday, but we will get the latest financial reports from its peers. ASML, LVMH And Nestlé This week kicks off third quarter earnings season.

Investors will also follow news from the IMF and World Bank annual meeting to be held in Washington this week.

— CNBC’s Dan Mangan and Victor Loh contributed to this market report.