European markets seen mixed ahead of ECB meeting, UK election

Bourses in Europe are set for a mixed open on Wednesday morning as investors opt for less risky options ahead of the U.K. General Election and a European Central Bank (ECB) meeting.

The FTSE 100 is seen opening higher by four points at 7,523; the CAC is set to start up by 7 points at 5,272 and the German DAX is seen 5 points lower at 12,680.

Opinion polls continue to indicate a victory for the Conservative party on Thursday but its lead over the Labour party is constantly changing. Such a gap will be key to determining how strong the new U.K. government will be, mainly to conduct Brexit negotiations with the EU. Sterling was marginally lower on Wednesday morning trading at $1.2897.

In France, the latest polls show that the party of President Emmanuel Macron is set to win the biggest parliamentary majority since 1968 later this month.

On investors’ radar is also an ECB meeting, where policymakers are expected to take a less dovish tone. Meanwhile, they are carefully watching the political rift between Qatar and several other countries in the Middle East. According to Reuters, trade in commodities, such as oil and food, is already being hit after just one day of the diplomatic row.

Oil prices moved marginally lower with Brent around $50 a barrel on Wednesday morning pressured by oversupply, although the Middle East rift supported the commodity. Source: CNBC

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