European markets to open lower as traders eye Trump-Xi meeting

Big 5

Markets in Europe are expected to open mostly lower Tuesday as investors focus on an upcoming meeting between U.S. President Donald Trump and China’s President Xi Jinping.

The FTSE 100 is seen higher by 7 points at 7,299; the German DAX is set to begin four points lower at 12,267 and the CAC 40 is expected to begin start 2 points lower at 5,086.

Investors seem to be taking a cautious approach ahead of the U.S.-China summit later this week after Trump said the meeting would be a difficult one in that we can no longer have massive trade deficits. This has boosted the search for safe havens.

In Europe, political uncertainty is also playing a role.

On Tuesday, a U.K. parliamentary committee asked Prime Minister Theresa May to prove that a no Brexit deal is better than a bad deal by presenting an economic assessment of leaving the EU without a deal.

The same committee wants the government to publish its contingency plans in case it doesn’t strike a deal with the EU within the two-year deadline.

Meanwhile, the chief executive of the Spanish lender Banco Popular is stepping down. Pedro Larena made the announcement Monday, saying it was down to personal reasons.

Earlier in the day, the bank had announced that internal audits showed the need for some adjustment in previous accounts, though the adjustments do not affect the statements in a significant way.

Meanwhile, the Reserve Bank of Australia has decided to keep its rates unchanged at a record low of 1.50 percent, in line with expectations.

On Tuesday’s calendar is the release of the Bank of England’s financial policy committee minutes at 8.30 a.m. London time.

The U.K. will also see the release of the latest PMI construction data at 9.30 a.m. London time and the euro zone will receive its latest retail sales data.

Source: CNBC

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