European markets seen higher, oil prices rise

Big 5

European bourses are expected to open higher Tuesday morning, following a trend of gains across the U.S. and Asia, as investors keep a close on eye on oil prices and look ahead to a new earnings season.

The U.K.’s FTSE is seen up by 3 points at 7,373; the German DAX looks set to begin trading at 12,465, up 19 points; and the French CAC is seen higher by 9 points at 5,174. Stocks in Asian markets finished mostly higher.

A survey by the CBI (Confederation of British Industry) and PwC out Tuesday revealed deteriorating business sentiment in the U.K., with uncertainty clouding the country’s future after the vote to leave the European Union. Meanwhile, U.K. Prime Minister Theresa May will relaunch her leadership in a major speech Tuesday, following a precarious election result last month in which she lost her governing majority.

On the earnings front, Marks & Spencer will release new figures and, in the U.S., PepsiCo is due to report second-quarter earnings before the market open.

Meanwhile, Brussels will host a meeting of EU finance ministers (ECOFIN). IMF (International Monetary Fund) Managing Director Christine Lagarde will be speaking in Dubrovnik, Croatia, at a conference.

Brent crude futures were trading at $47.07 per barrel, up 19 cents, on Tuesday morning while U.S. West Texas crude futures were at $44.56 per barrel, up 16 cents. Speaking to CNBC at the World Petroleum Congress in Istanbul, Russian Energy Minister Alexander Novak stressed the flexibility of an agreement between major producers to curb supply in an attempt to buoy prices.

The Russia-linked scandal surrounding the White House rumbles on, with the New York Times reporting Monday that Donald Trump Jr. met with a Russian lawyer with damaging information on then-presidential candidate Hillary Clinton, aware that the Russian government was attempting to support his father’s campaign. The White House played down the importance of the meeting. Source: CNBC

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