European stocks are mixed as attention shifts to Sino-US talks

(RTTNews) – European stocks open in a very mixed fashion on Tuesday after U.S. President Joe Biden and China’s Xi Jinping held a summit meeting via video link amid tensions over trade, technology, rights to man, Hong Kong and Taiwan.

Biden told Xi their goal should be to make sure the competition “does not come into conflict.” Xi said he was ready to “build consensus” to advance bilateral relations.

Asian markets were lower in choppy trading as inflation fears rise across the board. The recent outbreaks of COVID-19 cases in China and Europe have also helped keep underlying sentiment cautious.

Gold remained stable after hitting a five-month high in the previous session, as oil prices rose in Asian trade amid concerns over tight stocks. The euro hovered near a 16-month low after European Central Bank President Christine Lagarde pushed back calls and bets for a tightening of monetary policy, saying doing so now to curbing inflation could stifle the eurozone’s recovery.

Several Fed officials, including Vice President Richard Clarida and Fed Bank of San Francisco President Mary Daly, will speak later in the week at various events.

US President Joe Biden could decide this week to keep Jerome Powell as president for a second term or to elevate Fed Governor Lael Brainard to that post.

In economic releases, UK unemployment data and revised Eurozone GDP figures are due later in the session, headlining European economic news.

Across the Atlantic, reports on retail sales, trade prices and industrial production for October could provide additional information on the health of the economy.

Major US averages ended slightly lower overnight, as concerns over rising Treasury yields offset data showing strong growth in manufacturing activity in New York in November.

European stocks made modest gains on Monday as investors assessed Chinese data optimistic about signs of rising COVID-19 infections across Europe.

The pan-European Stoxx 600 gained 0.4%. The German DAX rose 0.3% and France’s CAC 40 index rose half a percent while the UK’s FTSE 100 finished flat with a positive bias.

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