European markets seen higher as investors look to Carney speech, data
European bourses are expected to open higher Tuesday, as investors turn their attention to individual stock news and data, while keeping a close eye on political news coming out of the region.
The London FTSE 100 index is called to open ten points higher at 7,533, the German DAX up 33 points at 12,921 and the French CAC up 14 points at 5,324, according to IG.
Brexit is likely to be on the agenda for investors on Tuesday following the start of Brexit negotiations on Monday, where the EU and UK’s chief Brexit negotiators agreed that talks up until October should concentrate on citizens’ rights, a financial settlement and other separation matters; Reuters reported.
Shortly after the market open, investors will be turning their attention to a speech by Bank of England Governor Mark Carney, who will be delivering a speech at Mansion House in London.
Market-watchers will be keeping a close eye to see if Carney makes any comments of the state of the U.K. economy and where it could be heading in a post-Brexit world.
Sticking with the U.K., the Confederation of British Industry (CBI) released its latest economic forecast, saying it expected the U.K. to see a “steady but subdued economic growth” over the next few years.
For 2017, the business group now expects 1.6 percent growth for 2017 and 1.4 percent during 2018, compared to previous expectations of 1.3 percent and 1.1 percent respectively.
Meanwhile in Europe, European Commission President Jean-Claude Juncker is set to meet with the European Council President Donald Tusk in Brussels.
In individual stock news, Sky will be watched closely as Ofcom and the Competition and Markets Authority’s (CMA) deadline to submit a public interest report into the proposed Fox/Sky merger arrives.
Meanwhile Heineken will also be watched, as its deadline to offer proposals to address competition concerns surrounding its planned takeover of Punch Taverns is due.
Major airline and defense stocks will be in focus on Tuesday, as investors continue to watch for any news or deals from the International Paris Air Show in France.
Markets in Asia were relatively mixed ahead of Europe’s opening bell. Meanwhile in oil, crude futures were relatively flat in early morning trade, with any gains capped as concerns over a glut in the market continued to weigh on sentiment.
On the data front, the Ifo Economic Forecast is due out during Europe’s morning trade, with the current account for the Euro Area also slated to come out.
Source: CNBC
