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European shares slide; diplomatic tensions weigh on ruble, lira

? European equities open lower after Asia closes largely higher.

? Ruble under pressure; lira plunges to historic low.

? Saudi Arabia reassures Canada on oil supplies.

? U.S. SEC to probe Elon Musk tweet.

The Euro Stoxx 50 lost 0.35% and the U.K.'s FTSE 100 was down 0.73% just before 7 a.m. ET. In Asia, Hong Kong's Hang Seng Index was up 0.88% and Chinese stocks rose 1.83%.

Both China and the U.S. now have 25% tariffs on up to $50 billion of goods and services, with neither country willing to back down, Michael Hewson, chief market analyst at CMC Markets UK, wrote.

Chinese monthly and annual consumer price inflation picked up in July, shrugging off the impact of higher tariffs.

The Russian ruble declined 0.53% against the dollar as of 7:08 a.m. ET. The U.S. announced new sanctions against Russia over a nerve agent attack in the U.K., which injured former Russian spy Sergei Skripal and his daughter earlier this year. The U.S. also threatened another round of sanctions if Russia does not meet certain conditions.

"The [ruble] looks set to stay under pressure in the coming months as the U.S. mood turns darker ahead of [November] midterms," ING wrote.

The U.S. dollar was mostly up against major currencies, and 10-year yields little changed at 2.958% as of 7:14 a.m. ET. The Japanese yen was down 0.14% against the dollar after latest data showed core machinery orders fell 8.8% month over month in June. Sterling continued to struggle amid Brexit uncertainty.

The New Zealand dollar plunged 1.4% against the U.S. dollar after the central bank said rates would remain unchanged, as expected, though the bank's governor surprised markets by pushing back its timetable for rate raises.

The Turkish lira was down nearly 2% amid worsening relations between the U.S. and Turkey. In the latest twist, a Turkish delegation reportedly refused to agree to release an American pastor being held in prison on suspicion of espionage and terrorism.

The Brazilian real was down 0.52%.

Brent crude oil prices were up nearly 0.3% to $72.48 per barrel around 7 a.m. ET after Saudi Arabia assured Canada that oil supplies would not be disrupted due to their ongoing diplomatic row. Riyadh has frozen new trade with Canada and ruled out mediation efforts after Canada demanded last week that jailed activists in the kingdom be released.

Gold was up 0.11% to $1,222.40 an ounce.

In regulatory news, the U.S. SEC reportedly wants to probe the veracity of a tweet from Tesla Inc. CEO Elon Musk that he has secured funding for what would be the largest-ever corporate buyout.

More from S&P Global Market Intelligence:

Systemic Risk Council: Fed leverage proposal would bring 'unnecessary risks'

China targets American vehicles, fuel with latest tariffs

China to back debt-to-equity swaps through targeted RRR cuts

Mazda, Suzuki, Yamaha Motor conducted improper fuel, emissions tests

Mylan initiates strategic review amid declining US sales

The day ahead:

8:30 a.m. ET — U.S. jobless claims (Econoday Consensus: 220,000)

8:30 a.m. ET — U.S. producer price index (Econoday Consensus: 0.3%, monthly)

9:30 a.m. ET — Fed’s Charles Evans speaks

10 a.m. ET — U.S. wholesale trade

10:30 a.m. ET — U.S. EIA natural gas report

4:30 p.m. ET — U.S. Fed balance sheet

4:30 p.m. ET — U.S. money supply

7:50 p.m. ET — Japan GDP (Econoday Consensus: 0.2%, quarterly)

7:50 p.m. ET — Japan producer price index (Econoday Consensus: 0.3%, monthly)