European markets set to open lower as positive sentiment vanishes

Market Overview - European stocks are anticipated to open lower, reversing the positive sentiment observed earlier in the week, influenced by potential trade disputes between the U.S. and China [1] - The U.K.'s FTSE index is projected to decline by 0.15%, Germany's DAX by 0.11%, France's CAC 40 by 0.16%, and Italy's FTSE MIB by 0.3% [1] Trade Relations - U.S. President Donald Trump has threatened to impose new tariffs on China in response to China's export controls on rare earth minerals, which are vital for high-tech industries [2] - China holds approximately 70% of the global supply of rare earth minerals, essential for sectors such as automobiles, defense, and semiconductors [2] Investor Sentiment - Despite Trump's threats, he suggested that trade relations with China "will all be fine," indicating a potential easing of tensions [3] - Following a recent rally driven by stimulus hopes, China's stock market is showing signs of strain as renewed trade tensions may undermine investor optimism [3]