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Stock markets in Europe are firmly in the red as President Trump outlined plans to impose a fresh round of tariffs on China.

The US president has lined up tariffs on $200 billion worth of Chinese goods as a way of showing Beijing he means business. There will be a two month review process, and a hearing in late August. The threat of another round of tariffs has rattled investors, just as market confidence was picking up. 

Sky is in focus after Fox upped its offer to 1,400p per share for the firm. Fox, which is controlled by the Murdoch family, already owns 39% of Sky and they are keen to acquire the remainder of the company. The government has expressed concerns about the Murdoch family owning too much of the British media. In April, Comcast offered Sky £12.50 per share, and dealers are wondering if the company will top Fox’s bid.

Barratt Development shares are in positive territory after the company confirmed it expects full-year pre-tax profit to rise by 9%. The homebuilder saw total completions jump by 1.1%, and the average selling price increased by 5.09%. Rock bottom interest rates and the government help-to-buy scheme has assisted the company. Barratt revealed a better-than-expected performance in central London, which has come off the boil. The outlook is upbeat too, as total forward sales has risen 1.5% on a year-on-year basis. 

AAR Corporation will be in focus today after the company revealed mixed fourth-quarter figures. Earnings per share were 54 cents and traders were expecting 51 cents, however, revenue was $474 million, while the consensus estimate was $484 million. The stock has been in an upward trend since February 2016, and if the bullish trend continues it could target $50.00.

At 1.30pm (UK time) the US will release the latest PPI report, and the consensus estimate is 3.2%, and that would be an improvement on May’s 3.1%.

The firmer US dollar index has put pressure on EUR/USD and GBP/USD. Traders will be paying attention to the PPI report as higher costs for producers could lead to higher inflation down the line.

We are expecting the Dow Jones to open down 214 points at 24,705 and we are calling the S&P 500 down 22 points at 2,771. 

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