European markets to open lower as oil prices dip

European bourses are seen lower Tuesday as investors focused on talks between OPEC members and the political uncertainty mounting ahead of a key referendum in Italy.

The FTSE 100 should open 3 points lower at 6,796; the DAX is seen 19 points lower at 10,563 and the French CAC should start 1 point lower at 4,509.

OPEC oil producers are preparing for a crucial meeting on Wednesday where they aim to agree on a production cut. However, oil prices are trading lower as investors doubt that a deal will be reached. On Monday, OPEC technical teams reportedly failed to agree on any details for the proposed cuts.

Meanwhile, President Mario Draghi of the European Central Bank warned Monday that Britain will feel the pain from Brexit before the euro zone. Draghi also asked for clarity over the upcoming negotiations.

The view of the British government of a Brexit plan is to “have cake and eat it,” according to a memo seen by the Financial Times. However, British officials are worried that France might steal some business from Britain.

On the data front Tuesday, the Bank of England will publish its latest mortgage approval numbers

Source: CNBC