European markets are on track to open higher Tuesday as tensions between the U.S. and North Korea show signs of subsiding, prompting investors to return to riskier assets.
The FTSE 100 is seen opening 25 points higher at 7,378; the German DAX is expected to start trading 61 points higher at 12,226; and the French CAC is expected up 26 points at 5,147.
The ongoing war of words between President Kim Jong Un and President Donald Trump appears to cool on Tuesday after the North Korean leader signalled that he would delay plans to fire a missile near Guam until it heard more from the U.S. administration. Asian markets moved higher on the news, while U.S. stocks posted their best day of the summer during Monday trade.
Nevertheless, other troubles continued to plague the White House as several key business figures departed Trump’s manufacturing council following his failure to initially condemn the violence of white supremacists in Charlottesville over the weekend. Three CEOs – Merck’s Kenneth Frazier, Intel’s Brian Krzanich and Under Armour’s Kevin Plank – have all stepped down.
The U.K. government is due to publish a white paper on Tuesday laying out plans for an interim customs agreement with the EU after Brexit to allow the freest movement of goods. It is also expected to seek the right to negotiate other trade deals during this transition phase – something which is not permitted during the negotiation period.
Meanwhile, Hargreaves Lansdown, Boohoo.com, K+S and Nexus are all due to report earnings.
Markets in Austria, Italy, Greece, and Poland are all closed Tuesday in celebration of Assumption Day. Source: CNBC