European markets to open mixed as EU leaders agree on top job nominations

European markets are expected to open mixed Wednesday after European leaders agreed on nominees to lead its main institutions for the next five years following a marathon summit.

The FTSE 100 is expected to open around 9 points higher at 7,568, the DAX is seen up around 17 points at 12,544 and the CAC 40 is set to open fractionally lower at 5,575, according to IG data.

European Union leaders agreed on Tuesday to nominate International Monetary Fund (IMF) Managing Director Christine Lagarde as the new head of the European Central Bank (ECB).

Germany’s Ursula von der Leyen was proposed to replace European Commission President Jean-Claude Juncker, Belgium’s Charles Michel for European Council president, and Spain’s Josep Borrell for EU foreign policy chief, after three days of grueling summit negotiations. The deal must now be approved by the European Parliament.

Stocks in Asia traded lower on Wednesday as global trade concerns weighed on investor sentiment, with indexes in mainland China, Hong Kong, Japan and South Korea all slipping.

Stateside, the S&P 500 posted a new record close on Tuesday, but gains remain subdued after the U.S. government on Monday threatened to impose tariffs on $4 billion of additional EU goods in a long-running dispute over aircraft subsidies.

The U.S. Commerce Department said on Tuesday that it would impose duties of up to 456% on certain steel produced and South Korea or Taiwan that are then shipped to Vietnam for processing before export to the United States.

Investors will also be monitoring tensions in the Middle East as European signatories to the Iran nuclear deal expressed concern about Tehran’s apparent breach of uranium limits, while Israel said it was preparing its military for possible involvement in conflict between Iran and the U.S.

Back in Europe, Bank of England Governor Mark Carney said a global trade war and a possible no-deal exit from the EU posed growing threats to the British economy which might need more aid to cope with a potential downturn, prompting increased bets on an interest rate cut from the central bank.

In corporate news, the Wall Street Journal reported that Deutsche Bank has held talks with Citigroup, BNP Paribas and others about a possible transfer of parts of its equities business.

June services PMI data is due out of the majority of major European economies on Wednesday morning.

Source: CNBC