BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are set to open lower on Thursday on worries about a likely increase in U.S.-China tensions after reports suggested the U.S. Justice Department is pursuing criminal charges against Chinese tech giant Huawei for alleged trade secrets theft.
U.S. authorities are in the 'advanced' stages of a criminal probe that could result in an indictment of Huawei, the Wall Street Journal reported.
Asian stocks are mostly higher after British Prime Minister Theresa May won a confidence vote in the parliament and then appealed to lawmakers to break the impasse on a Brexit divorce agreement.
Meanwhile, as the U.S. government shutdown enters its 26th day, GOP Senator John Kennedy dismissed a bipartisan effort to urge President Donald Trump to open the government for several weeks to clear the way for talks on border security.
The dollar took a breather after recent gains while oil edged lower in cautious trade on worries about surging U.S. production.
Overnight, U.S. stocks rose for a second straight session, reflecting positive reaction to upbeat earnings news from financial giants Bank of America and Goldman Sachs.
The Dow gained 0.6 percent and the S&P 500 edged up 0.2 percent to hit their highest levels in a month while the tech-heavy Nasdaq Composite index rose 0.2 percent.
European markets ended Wednesday's session on a mixed note as investors gave a muted reaction to the defeat of the U.K. government's Brexit bill.
The pan-European Stoxx 600 advanced half a percent. The German DAX added 0.4 percent and France's CAC 40 index inched up half a percent while the U.K.'s FTSE 100 dropped half a percent.
Copyright RTT News/dpa-AFX