European stocks opened lower on Tuesday, hit by a drop overnight on Wall Street following a flare-up in U.S.-China tensions and new coronavirus restrictions.
U.S. tech majors lost momentum on Monday after California shut bars, banned restaurant dining and other businesses to contain a surge of coronavirus infections, raising fears it may slow a U.S. economic recovery. [.N]
Meanwhile, Washington on Monday rejected China’s disputed claims to offshore resources in the South China Sea, a move that Beijing criticised as inciting tensions in the region. The latest skirmish dampened risk sentiment even as investors were hopeful that companies will surpass beaten-down earnings expectations with the reporting season underway.
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