European markets set to open lower amid backdrop of geopolitical tension

Big 5
European markets were set to open lower on Wednesday morning, tracking Wall Street’s slide overnight amid a backdrop of lingering geopolitical tension.

The FTSE 100 is seen 28 points lower at 7,347; the DAX is expected to open down by around 44 points at 12,079 and the French CAC is poised to open 30 points lower at 5,058.

Tensions in the Korean Peninsula showed little sign of abating following Pyongyang’s largest-ever nuclear test on Sunday. Despite international condemnation in the wake of the isolated regime’s latest test, a top North Korean diplomat threatened the U.S. with “more gift packages” on Tuesday.

Growing international unease regarding North Korea appeared to prompt a fall in U.S. stocks overnight as the S&P 500 stumbled to its biggest single-day loss in approximately three weeks. The dollar posted losses against the Japanese yen and the Swiss franc during Asian trade, reaffirming the risk-averse mood in the broader markets.

Meanwhile, investors continue to look ahead to Thursday’s meeting of the European Central Bank’s Governing Council, which is expected to debate the timing of an exit from its ultra-loose monetary policy program. Source: CNBC