European stocks traded mixed Tuesday, after it was confirmed Chinese Vice Premier Liu He would attend trade talks in Washington.
The FTSE 100 dropped by around 0.4% at the start of Tuesday’s session, while the CAC traded roughly flat and the DAX rose by 0.15%.
The pan-European STOXX Europe 600 traded around the flatline at the start of the session.
Telecoms was the top performing sector, up around 1%, while bank stocks showed the most substantial slide, dropping around 0.6% led by HSBC and Standard Chartered, falling 1.9% and 2.4% respectively.
Shares in BMW fell by around 1.2% after the German carmaker reported a 78% drop in first-quarter profits, hit by legal provisions and expenses.
In corporate news, Belgian drinks maker AB InBev reported its first-quarter earnings Tuesday morning, along with Irish tax-registered pharmaceutical company Allergan. Shares of AB Inbev traded 0.5% lower.
Monday saw a market sell-off after U.S. President Donald Trump vowed to ramp up tariffs on China, but recovered slightly from heavy losses in morning trade after sentiment improved on Wall Street.
In Asia, Chinese markets staged a slight recovery in Tuesday’s session after plunging 5% on initial trade news. The Shanghai composite rose 0.32% and the Shenzhen component added more than 1.6%, while the Shenzhen composite advanced 1.467%.
China’s commerce ministry said on Tuesday Vice Premier Liu He will visit the United States on May 9 and May 10 for bilateral trade talks at the invitation of senior U.S. officials. This according to Reuters.
Stateside, investors will be digesting the news that a Chinese delegation will travel to Washington to address Trump’s tariff hike threats. Reports had suggested the Chinese Vice Premier would cancel his trip after Trump tweeted threatening more tariffs on Chinese goods, but it has now been confirmed Liu He will travel to the U.S. for talks on Thursday.
Back in Europe, reports Monday night revealed Italian banks have backed BlackRock’s 720 million euro rescue plan ($806 million) for rival Carige, which will hand control of the Genoa-based bank to the U.S. asset manager.
Meanwhile, the European Commission is set to release its latest economic forecasts later today. Analysts expect some concerns raised around Italy’s deficit.