European stock markets opened slightly higher in early trade on Friday as a volatile week for shares nears its end and concerns about a trade war between the U.S. and China persist.
The pan-European Stoxx 600 opened up 0.4%, with the U.K.’s FTSE 100 inching up by 0.5%, while Germany’s Dax and France’s CAC 40 were higher by 0.4% at 8.10 am London time.
It has been a choppy week for European, and global, markets as investors have been reacting to the frequent developments in global trade policy that were set off by U.S. President Donald Trump’s latest tariff plans.
Trump’s so-called reciprocal tariffs came into effect earlier this week before being temporarily dropped to a blanket 10% for 90 days to allow for trade negotiations with most of the close to 90 countries and territories targeted. Tariffs on imports from China were raised, however.
The European Union on Thursday responded in a similar vein, pausing the adoption of countermeasures for 90 days. “We want to give negotiations a chance,” European Commission President Ursula von der Leyen said on social media.
But trade policy uncertainty persisted, as it was unclear how negotiations between the U.S. and its trading partners would play out. Fears about a trade war between the U.S. and China were front of mind.
The two countries have been slapping one another with higher and higher tariffs throughout the week, with the White House on Thursday confirming to CNBC that the cumulative tariff rate on China now would effectively total 145%. This includes the 125% duty on goods, as well as a 20% fentanyl-related duty.
Asia-Pacific markets were last mixed. Stateside, U.S. stock futures slipped after a losing session for stocks on Thursday.
In Europe, investors will on Friday be watching out for the release of monthly U.K. gross domestic product data.
