BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are seen opening a tad lower on Thursday after reports emerged that the Trump administration is considering a plan to curb a dizzying array of software-powered exports to China, stoking fresh trade tensions.
Investors will also react to mixed third-quarter results from Tesla. Elon Musk's electric car maker reported revenue that beat expectations, while earnings fell short of estimates.
Also, IBM stock fell 4 percent in late hours after the company reported disappointing revenue in two key software categories.
Asian markets were broadly lower as investors reacted to rising Sino-U.S. trade tensions and a lack of progress in Ukraine peace talks.
The yield on 10-year U.S. Treasuries was steady after falling one basis point to 3.95 percent on Wednesday as an auction of 20-year bonds drew strong demand.
Gold extended losses for a third day running, falling below $4,100 an ounce due to profit taking ahead of key U.S. inflation data due this week.
Oil prices jumped nearly 4 percent, extending gains for a third consecutive session as U.S. President Trump imposed Ukraine-related sanctions on Russia for the first time in his second term.
The Trump administration announced sanctions on Russia's biggest oil producers, Rosneft and Lukoil, in a bid to pressure Moscow to end the war in Ukraine.
'Treasury will continue to use its authorities in support of a peace process,' according to an official statement.
Overnight, U.S. stocks ended lower as Netflix reported weaker than expected third quarter earnings, Texas Instruments disappointed with its Q4 guidance, and Treasury Secretary Scott Bessent confirmed that the White House is weighing curbs on exports to China made with U.S. software in retaliation for Beijing's latest round of rare earth export restrictions.
The tech-heavy Nasdaq Composite gave up 0.9 percent, the Dow dipped 0.7 percent and the S&P 500 declined half a percent.
European stocks closed mostly lower on Wednesday after U.S. President Trump said meeting Russia's Vladimir Putin would be a 'waste of time' and that an upcoming meeting with his Chinese counterpart, Xi Jinping, might not happen.
The pan-European STOXX 600 slid 0.2 percent. The German DAX dropped 0.7 percent and France's CAC 40 fell 0.6 percent while the U.K.'s FTSE 100 climbed 0.9 percent on pound weakness after the release of soft inflation data.
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