BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks look set to open on a positive note Friday after steep losses in the previous session on worries the U.S.-China trade spat was developing into a more entrenched strategic dispute between the world's two largest economies.
Asian markets hovered near a four-month low, although Chinese and Hong Kong shares recovered slightly after U.S. President Donald Trump said that Washington's complaints against Huawei Technologies might be resolved within the framework of a U.S.-China trade deal. At the same time, Trump called the Chinese telecom giant 'very dangerous.'
Chinese Commerce Ministry spokesman Gao Feng said on Thursday the Trump administration must 'show sincerity and correct their wrong actions' if it wants to continue trade talks.
'Negotiations can only continue on the basis of equality and mutual respect,' Gao said, noting that China is closely monitoring developments and preparing a necessary response.
Gold held steady and the dollar remains on track to post a small weekly loss while oil headed for its biggest weekly drop since December on concerns about global growth and surging U.S. crude inventories.
The British pound continued to wallow around four-month lows against the dollar as pressure mounted on British Prime Minister Theresa May to make way for a new leader.
On the data front, the Office for National Statistics is set to issue U.K. retail sales figures for April later in the day. Sales including auto fuel are forecast to grow 4.5 percent annually, slower than the 6.7 percent increase seen in March.
U.S. stocks retreated further overnight amid trade tensions after the Chinese Communist Party's flagship newspaper published two commentaries assailing U.S. moves to curb Chinese companies
The Dow Jones Industrial Average dropped 1.1 percent and the S&P 500 declined 1.2 percent while the tech-heavy Nasdaq Composite tumbled 1.6 percent to end at its lowest closing level in over two months.
European markets fell sharply on Thursday as investors remained wary of the impact of the U.S.-China trade dispute on the global economy.
Falling crude oil prices, soft euro zone data and Brexit uncertainty also weighed on markets.
The pan European Stoxx 600 gave up 1.4 percent. The German DAX and France's CAC 40 index both plunged around 1.8 percent while the U.K.'s FTSE 100 plummeted 1.4 percent.
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