European markets seen lower as geopolitical concerns deepen

Big 5

Bourses in Europe are seen lower on Tuesday morning as tensions between North Korea and the U.S. intensify and European monitors criticizes Turkey’s referendum.

The FTSE 100 is seen 24 points lower at 7,303; the French CAC is expected to start off by 5 points at 5,080 and the German DAX is set to open 3 points lower at 12,125.

Hopes over immediate tax reforms in the U.S. have somewhat dissipated after Treasury Secretary Steve Mnuchin told the Financial Times that a new plan is unlikely to be ready before August.

U.S. Vice President Mike Pence will meet Japanese Deputy Prime Minister Taro Aso on Tuesday, aiming to open Japan’s doors for U.S.-made goods and attracting Japanese infrastructure investment. Earlier, Japan’s Prime Minister Shinzo Abe said he supported the U.S. administration stating that pressure is necessary in dealing with North Korea’s missile and nuclear threat.

In corporate news, investors will be waiting for the latest earnings reports of L’Oreal and Casino Group. Goldman Sachs, Bank of America and IBM are also due to release their latest figures in the U.S. Elsewhere, Post Holdings is set to buy Britain’s Weetabix for $1.76 billion, Reuters reported.

The International Monetary Fund is also due to release two forecast chapters of its latest World Economic Outlook on Tuesday.

Source: CNBC

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