European markets set to open lower ahead of Federal Reserve meeting

Big 5
European markets were set to open slightly lower on Tuesday morning, as investors paused for breath ahead of a Federal Reserve meeting.

Britain’s FTSE 100 is poised to open 5 points lower at 7,251; the German Dax is expected to open down by around 11 points at 12,554 while the French CAC is set to open 6 points lower at 5,223.

Asian shares slipped on Tuesday despite record highs on Wall Street in the previous session. U.S. Treasury yields appeared to boost financial shares on Monday, with the Dow Jones industrial average notching a record high for the fifth consecutive session and the S&P 500 also hitting another record high.

The Federal Reserve is poised to begin a two-day meeting later on Tuesday as investors awaited further clues regarding U.S. monetary policy. The central bank is expected hold interest rates steady.

Elsewhere, President Donald Trump is set to make his first appearance at the United Nations (UN) General Assembly on Tuesday. At a special meeting on UN reform on Monday, Trump suggested the UN had not fulfilled its potential because of mismanagement and bureaucracy issues. He is expected to call for a harder line on North Korea and Iran on Tuesday.

On Monday, Bank of England Governor Mark Carney said any pending interest rate rises over the coming months would be limited and gradual, prompting sterling to retreat from its highest level since the Brexit vote.

The U.K. currency fell almost one percent on Monday, but pared some of its losses to trade at $1.3542 at around 6:45 a.m. London time on Tuesday. Source: CNBC