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European stocks set to open lower after US and China take tough trade stances

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European stocks are set to open lower after the U.S. and China resumed tough stances in their ongoing trade war.

U.S. President Donald Trump on Tuesday defended the use of tariffs as part of his trade strategy, while China vowed a tough response if Washington insists on escalating trade tensions as the world's two largest economies attempt to negotiate a deal.

Asian stocks slid Wednesday after Wall Street ended a 6-day winning streak overnight, with China's consumer price index rising 2.7% year-on-year. Hong Kong'sled losses with a 1.59% drop by the afternoon as protests continued over the contentious Chinese extradition law. Back in Europe, Reuters reported Tuesday that euro zone deputy finance ministers supported the European Commission's view that disciplinary action is warranted against Italy over the country's rising debt.

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