European markets set to open higher amid cooling geopolitical tensions
Britain’s FTSE 100 is poised to open 30 points higher at 7,237; the German DAX is expected to open up by around 70 points at 12,589 while the French CAC is set to open 29 points higher at 5,238.
After a dip in risk appetite towards the end of last week, Asian shares bounced back to hit decade highs on Monday, with South Korea’s benchmark leading the gains, brushing aside concerns of escalating tensions in the Korean Peninsula.
While the weekend passed with no new provocation from North Korea, the isolated regime’s nuclear weapons program is likely to take center stage once again on Tuesday, when President Donald Trump addresses world leaders at the United Nations.
Meantime, the main event for markets this week is likely to be the Federal Reserve’s monetary policy meeting on Tuesday and Wednesday.
The U.S. central bank is seen as likely to take another step towards normalization. In recent months, Canada has raised interest rates twice while Britain’s central bank shocked many on Thursday when it signaled its own coming increases.
Elsewhere, some details of Trump’s tax plans are expected to emerge over the coming days while citizens of New Zealand and Germany both head to the polls to vote in national elections this week.
Source: CNBC
