European equities will fall in trade war and political worries

European equities should start in the red of Wednesday's session, amid concerns over the US-China trade war and a fiscal stalemate between Italy and the EU.

The British FTSE 100 fell 42 points to 7,229, the German DAX 90 points to 11,933 and the French CAC 41 points to 5,253, according to data from the IG index.

Traders are taking a more cautious approach to risky badets, with the trade battle between Washington and Beijing proving to be a major source of concern for global markets.

President Donald Trump said earlier this week that his administration was "not ready" to reach an agreement with China, adding that tariffs on the country's imports could increase "substantially."

At the same time, a Chinese official hinted on Tuesday that Beijing could use its power in rare earth ores as leverage in its trade dispute with the United States.

Back in Europe, fears of a coming political battle between Rome and Brussels came back this week, reports that the EU was considering disciplinary measures following the Italian government's inability to master his debt.

Italian Deputy Prime Minister Matteo Salvini said that Rome could be targeted with a debt of 3 billion euros ($ 3.3 billion) and a deficit that would break the rules of the bloc.

A European official told CNBC that he could not confirm whether Italy would be sentenced to a hefty fine, but that the EU executive had "some concerns" over the country's fiscal trajectory.

Disappointing economic data also weighed on European investors. An indicator of German consumer confidence fell to its lowest level in two years on Tuesday.

On Wednesday, investors are expected to monitor German import prices and the April unemployment rate, while France will release figures for economic growth and inflation.

Another economic news to watch on Wednesday, the European Central Bank will publish its half-yearly review of potential risks to financial stability in the euro area at 9 am London time.