European bourses are set for a lower open on Thursday following indications by the U.S. Federal Reserve that it wants to pare back its balance sheet.
The FTSE 100 is seen 68 points lower at 7,253; the DAX is expected to start trading down by 78 points at 12,130 and the CAC 40 is set to begin 30 points lower at 5,055.
Investors are likely to take a defensive approach ahead of a meeting between U.S. President Donald Trump and President Xi Jinping of China.
They are set to discuss trade and relations with North Korea. Fears of a potential trade war between the two kept Asian markets on edge on Thursday morning.
Meanwhile, in Europe, investors will also be looking at the European Central Bank (ECB).
The ECB is set to release accounts of its last monetary policy meeting. Mario Draghi, the president of ECB, is set to speak at a banking event in Germany at 8.00 a.m. London time.
In terms of data, Thursday’s calendar is thin, with the release of the latest German industrial order numbers and the Greek unemployment figures.