Europe set for mixed open as Catalonia crisis worsens

European equities are set to open mixed on Wednesday morning as investors keep a close eye on events in Catalonia, where the leader of the region’s separatist government has said he will declare independence “in a matter of days.”

The FTSE 100 is expected to open 7 points lower at 7,459, the German DAX is seen 7 points higher at 12,939 and the French CAC is seen 8 points higher at 5,376.

Meanwhile, Spain’s IBEX is expected to open 25 points lower at 10,232 as a constitutional crisis grows in the country.

The head of Catalonia’s devolved government Carles Puigdemont, told the BBC his administration would declare independence from Spain “at the end of this week or the beginning of next.” Also, King Felipe issued a televised address Tuesday in which he condemned Catalonia’s separatist leaders.

In other European news, tire maker Pirelli is set to start trading on the Borsa Italiana, interim results are due from U.K. retailer Tesco and euro zone retail sales for August are expected around 10am U.K. time.

In other news, the World Bank raised its economic growth forecasts for developing East Asia and Pacific for this year and 2018, but added the generally positive outlook was clouded by risks such as rising trade protectionism and geopolitical tensions, Reuters reported.

Markets were mixed in Asia despite U.S. equities closing higher overnight. Trade in Asia has been subdued this week as markets in China, South Korea and Taiwan are closed for the Golden Week public holiday. Source: CNBC