European markets are expected to open relatively flat to slightly higher Wednesday morning, as investors digest news that the U.S. administration is pulling the country from the Iran nuclear accord.
Looking to major bourses, the U.K.’s FTSE 100 is seen flat at the open at 7,566, while the French CAC 40 is also expected to open around the flatline at 5,522, while Germany’s DAX is poised to start the day higher by 9 points at 12,921, according to IG.
After Europe closed for trade Tuesday, President Donald Trump said that he would be withdrawing the U.S. from the Iran deal, and added that sanctions on Iran would be restored. Removing the U.S. from the accord was a campaign promise made by the president during the run-up to the 2016 election.
“We will be instituting the highest level of economic sanction. Any nation that helps Iran in its quest for nuclear weapons could also be strongly sanctioned by the United States,” the U.S. incumbent said Tuesday.
The announcement made by the U.S. was met with a mixed response, with some nations from the Middle East praising Trump’s decision, while allies in Europe were not in agreement.
Iranian President Hassan Rouhani stated Tuesday that the Middle Eastern country would continue to remain committed to the nuclear deal in spite of Trump’s decision to walk away from the deal; Reuters reported.
Following the news, oil prices have been on the rise, with crude futures rising more than 2 percent ahead of the European open following Trump’s announcement. Brent rose above $76.50 while U.S. crude hovered around $70.60 prior to Wednesday’s market open.
Meantime, markets in Asia were trading mixed to lower, as investors mulled the decision made by Trump.
Stepping aside from politics, more earnings are also due to be released.
Anheuser-Busch, Siemens, Deutsche Telekom, TUI, Enel, Ahold Delhaize, ING, Zurich and Imperial Brands are just a handful of major brands set to publish corporate results.
On the economic front, retail sales for Italy are due in morning trade.