European markets to open lower after Trump fires FBI Director James Comey

European markets are expected to open lower Wednesday as investors focused on fresh corporate earnings and the dollar pared recent gains amid a rise in political tensions.

The U.K.’s FTSE 100 is seen seven points lower at 7,338; the German DAX is on track to open down 38 points at 12,724, and the French CAC is expected to open lower by around 15 points at 5,386.

Markets appeared on edge on Wednesday after U.S. President Donald Trump abruptly dismissed FBI Director James Comey in a move that shocked Washington. The White House claimed the sudden termination of Comey’s contract Tuesday evening was over his handling of Hilary Clinton’s emails. However, Democrats said the decision was most likely as a result of the FBI investigating alleged links between the Trump campaign and Russia.

On the data front, France and Italy are both set to report industrial production figures by 9 a.m. London time.

Meanwhile, European Central Bank President Mario Draghi is set to deliver a speech on the impact of monetary policy. The ECB chief will address the Dutch Parliament at around 12 p.m. London time on Wednesday.

In the U.K., prosecutors are expected to announce whether politicians from the governing Conservative party will face charges for alleged breaches of expenses rules. The Crown Prosecution Service is considering files sent by police following investigations in as many as 27 different constituencies.

Elsewhere, U.S., Secretary of State Rex Tillerson is poised to welcome Russian Foreign Minister Sergey Lavrov to Washington on Wednesday. Ukraine, Syria and bilateral issues between the U.S. and Russia are set to be discussed.

Finally, in Asia, South Korea’s newly elected President, Moon Jae-in, has been sworn in after a comfortable victory. The liberal former human rights lawyer said has said he would be willing to visit Pyongyang “in the right circumstances.”
Source: CNBC