European stocks set to open lower as trade war escalates

European markets are set to open lower Thursday despite a late rally in Wednesday afternoon trade, after CNBC revealed that the U.S. plans to delay auto tariffs on European imports by up to six months.

The FTSE 100 is seen around 36 points lower than its Wednesday close at 7,260, while the DAX is set to open around 68 points lower at 12,031 after a tremendous rebound on the trade news.The CAC 40 looks set to open around 25 points lower at 5,349.

Despite early losses across European markets Wednesday, autos finished around 2% higher Wednesday after three sources told CNBC Wednesday the administration will delay the tariffs, causing shares in carmakers Porsche, BMW and Daimler to climb.

In Asia, shares were mixed in Thursday afternoon trade after the U.S. took aim at Huawei again, with President Donald Trump declaring a national emergency over threats against U.S. technology. The move, done via executive order, is expected to precede a ban on American firms dealing with the Chinese telecommunications company.

Mainland Chinese and Hong Kong shares recovered from an early slip to trade slightly higher in the afternoon, while stocks in Japan and South Korea finished in the red.

Stateside, investors will be monitoring a volatile market environment after stocks rose Wednesday following the announcement of the delay to auto tariffs. This came after a market sell-off Monday as the trade war between the world’s largest economies gathered pace.

Trade tensions, however, continued to weigh on investor sentiment as Trump declared a national emergency over threats against American technology.

Back in Europe, Brexit-supporting rebels within British Prime Minister Theresa May’s Conservative Party said Wednesday they would vote down her European Union divorce deal, due to be put before parliament for a fourth time next month.

Meanwhile, the European Commission is working on its biggest regulatory push on banking since the 2008 financial crisis, which could curb Britain’s access following its departure from the bloc, Reuters reported.

In corporate news, Italy’s Generali is set to report first-quarter earnings, along with insurer NN Group, travel agency Thomas Cook and ailing football club Manchester United.