European markets are set to open mixed Tuesday morning, as escalating tensions between Saudi Arabia and the West exacerbate geopolitical concerns and limit gains.
The FTSE 100 is seen down around 4 points at 7,025, the CAC is expected to open 5 points higher at 5,100, while the DAX is poised to start up 27 points at 11,642, according to IG.
Market focus is still focused on the disappearance of a prominent journalist critical of Saudi Arabia’s policies earlier this month. The disappearance has triggered international outcry against the OPEC kingpin, rattling financial markets.
Jamal Khashoggi, a U.S. resident and prominent critic of Crown Prince Mohammed bin Salman, disappeared after entering the Saudi consulate in Istanbul, Turkey on October 2. Turkish authorities claim Khashoggi was murdered and his body removed. Saudi Arabia has fiercely denied that.
However, NBC News reported Monday the government is considering a plan to admit that Khashoggi was killed inside its consulate, according to three anonymous sources with knowledge of the matter.
U.S. Secretary of State Mike Pompeo was expected to land in Riyadh to discuss the case on Tuesday, potentially straining the relationship between the strategic allies.
In Asia, MSCI’s broadest index of Asia-Pacific shares, excluding Japan, were around 0.2 percent higher.
Back in Europe, investors continued to monitor an apparent stalemate in Brexit negotiations. The post-Brexit status of the Irish border remains a sticking point for negotiators ahead of a critical summit of European leaders on Wednesday.