European markets to open higher as North Korea jitters subside and Brexit talks continue
In the previous day’s trade, markets worldwide became skittish on the back of news that North Korea had fired a ballistic missile over Japan, however U.S. markets finished in the black and Asia traded mostly higher on Wednesday as nerves abated.
On Tuesday, President Donald Trump issued a statement saying that “all options are on the table” when it comes to responding to North Korea’s recent missile launch.
European markets are expected to start the session in the black on Wednesday, as investors try to oust any nerves surrounding North Korea tensions and take advantage of the positive sentiment seen overseas.
“The world has received North Korea’s latest message loud and clear: this regime has signaled its contempt for its neighbors, for all members of the United Nations, and for minimum standards of acceptable international behavior,” Trump said in a statement.
The U.S. incumbent went on to add that “threatening and destabilizing actions” would only increase the North Korean regime’s isolation both in Asia and with the rest of the world.
Sticking with politics, European investors will be looking for any updates when it comes to the ongoing discussions taking place in Brussels, in regards to Brexit negotiations.
Wednesday will mark the third day in the third round of Article 50 negotiations between the U.K. and the European Union (EU).
In the latest news surrounding the talks, European Commission President Jean-Claude Juncker criticized the U.K.’s Brexit negotiations, stating that the country had failed to answer “huge numbers of questions” on its plans, according to Reuters.
Meanwhile, the wrath of Hurricane Harvey continues to be felt in markets worldwide, with oil prices under pressure in morning trade as flooding and storm damage continues to have an impact on U.S. refineries.
At 6.30 a.m. London time (1.30 a.m ET), Brent traded around $51.79 a barrel, while U.S. crude last stood around $46.31.
Looking to data, U.K. consumer credit figures, euro zone sentiment and preliminary inflation data for Germany are all due out during market trade.
Source: CNBC
