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European stocks seen mixed as partial US-China deal fails to boost sentiment

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European stocks were seen opening flat on Thursday morning as reaction appeared muted to the signing of a partial trade deal between the U.S. and China.

President Donald Trump signed an initial "phase one" trade deal with China on Wednesday that will roll back some of the tariffs on one another's goods and increase Chinese purchases of U.S. products.

While the deal takes some steps to address unpalatable trade practices by Beijing, many of the key structural issues at the heart of the trade conflict remain unresolved as the two sides enter "phase two."index adding 0.4% while mainland Chinese stocks failed to get off the ground, with the Shanghai composite retreating 0.3%.

Back in Europe, trade tensions also flared between China and the Netherlands after Beijing's ambassador was quoted warning the Dutch government against preventing Dutch semiconductor equipment supplieris hoping to reopen talks with Italy's coalition government on motorway toll cuts following a long-running dispute over its concessions, Reuters reported citing two sources.

German inflation data is due Thursday morning, while European Central Bank President Christine Lagarde is due to speak at 6 p.m. London time.

 

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