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The U.S. Trade Representative Robert Lighthizer said that there could be a new 10 percent tariff on $200 billion of Chinese goods.
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Sainsbury’s is set to announce Martin Scicluna as its new chairman.
European shares traded sharply lower on Wednesday morning after U.S. authorities unveiled a new list of Chinese products that could see tariffs.
The pan-European Stoxx 600 was off by 1.14 percent with all sectors in the red. Basic resources were the worst performers, down by more than 3 percent, on the back of renewed trade war concerns.
The U.S. Trade Representative Robert Lighthizer said that there could be a new 10 percent tariff on $200 billion of Chinese goods. Officials in China have said the tariffs harm the World Trade Organization (WTO) system and globalization.
Meanwhile, President Donald Trump said in Brussels that Germany is “totally controlled ” by Russia. The comments might lead to heated discussions at a NATO summit starting today. This meeting is the first in Trump's calendar during his European tour.
Looking across the European index, U.K. housebuilder Barratt Developments was among the top gainers, up by 1.2 percent, after issuing a trading update. Lagardere MMB-FR jumped 1 percent after an upgrade to a "buy" from Goldman Sachs.
Indivior INDV-GB dropped to the bottom of the index, off by 30 percent. The company warned its revenues might be dented and come below expectations. Burberry BRBY-GB was 4 percent lower despite presenting no change to its 2019 guidance.
In other corporate news, Sainsbury’s SBRY-GB is set to announce Martin Scicluna as its new chairman, according to Sky News.
Meanwhile, U.K. Theresa May has won the endorsement of Angela Merkel and two senior ministers for her Brexit plan, after two key resignations earlier in the week, Reuters reported. A new round of Brexit negotiations are due next week.
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