European stock markets slightly lower,
European stock markets slightly lower, in tandem with U.S. futures after a broad sell off in Asia overnight. Escalating trade tensions between Japan and South Korea, as well as fears that a flood of new listings in China weighed on confidence. Topix and Nikkei lost -89% and -0.98% respectively, while Kospi and KOSDAQ lost -2.2% and -3.7% with technology stocks generally underperforming after Japan put export restrictions on specialised products needed to make semiconductors and computer displays and also threatened to remove South Korea from a list of trusted buyers. Simmering protests in Hong Kong and Erdogan's move to replace the Turkish central bank head meanwhile added to the negative risk backdrop as Asian markets digested Friday's U.S. data. The Hang Seng declined -1.5%, CSI 300 and Shanghai Comp fell back -2.3% and -2.6% respectively. The sell off eased during the European session, although markets remained cautious ahead of Fed Chairman Powell's testimony this week and while Bund and Gilts recovered some of Friday's losses, DAX and FTSE 100 fell back -1.3% and -0.11% respectively. U.S. futures are down -0.2-0.4% while the front end WTI future backed up from lows and is trading at USD 57.56 per barrel.