European markets seen mixed after pullback in tech stocks

European markets are poised for a mixed open on Tuesday in Europe, after a rout in tech stocks on Wall Street.

The FTSE 100 is seen up by 1 point at 7,054; the CAC 40 is expected to start higher by 6 points at 5,065; the DAX is set to open up by 2 points at 11,327, and In Italy, the FTSE MIB is seen lower by 75 points; according to IG.

Stocks stateside were hit by a plunge in Apple shares. One of Apple’s suppliers – Lumentum Holdings – said that one of its largest customers had asked to reduce shipments for its products. Two other Apple suppliers issued warnings that suggested weakness in iPhone sales. This sparked fears across the tech sector and dented sentiment also in Asian trading.

Investors are keeping a close eye on oil prices, after new comments from President Donald Trump. He said that the group of oil producers OPEC should not cut supply to prop up the market. Oil prices fell about 1 percent on Tuesday.

In Europe, Brexit and Italy continue to be the main issues for investors.

U.K. Prime Minister Theresa May said on Monday that negotiations are hitting the “endgame” but there are still considerable differences to fix.

Rome has until the end of Tuesday to submit a new budget plan for 2019 to the European Commission, after the latter said the original plan was not in line with previous commitments.

In the meantime, Italy’s Banca Carige has said that the country’s biggest banks and private investors will step in to boost its capital position by up to 400 million euros ($451 million) to meet a year-end deadline by the European Central Bank.

In terms of earnings, Vodafone, EDF, and Innogy will report. And the data calendar includes economic sentiment in the euro zone at 10 a.m. London time.

Source: CNBC

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