Europe: Stock markets open lower

EUROPEAN stock markets fell at the open on Tuesday (Aug 2) after losses in Asia as US-China tensions have risen over a possible visit by US House Speaker Nancy Pelosi to Taiwan.

London's FTSE 100 was down 0.3 per cent to 7,393.18 points, the Paris CAC 40 fell 0.6 per cent to 6,397.96 points and Frankfurt's DAX shed 0.9 per cent to 13,356.82.

Traders were already skittish after a string of data showed economies beginning to take a hit from surging inflation and central bank interest rate hikes aimed at taming prices.

"After a strong finish to July, European and US markets got off to a cautious start to the month of August, with early gains giving way to weakness as China, US tensions ramped up on reports that US House Speaker Nancy Pelosi is due to visit Taiwan later this evening," said Michael Hewson, analyst at CMC Markets UK. AFP