European stocks seen lower as Khashoggi crisis dents sentiment

European stocks are set to open lower Tuesday morning, as diplomatic tensions in Saudi Arabia, concerns over Italy’s Budget and ongoing Brexit talks all depressed market sentiment.

The FTSE 100 is expected to start around 40 points lower at 7,002, the CAC is seen down 23 points at 5,029, while the DAX is poised to open 84 points lower at 11,440, according to IG.

Market focus is largely attuned to the killing of journalist Jamal Khashoggi at a consulate in Turkey earlier this month. President Donald Trump said Monday that he was not satisfied with what he had heard from Saudi Arabia, amid intensifying international pressure to explain exactly what happened to Khashoggi.

Turkish authorities claim Khashoggi was murdered by a team of Saudi agents inside the consulate and say they have evidence to prove it. Saudi Crown Prince Mohammed bin Salman has denied any involvement.

Turkish President Recep Tayyip Erdogan has said he will release information about the investigation in a speech later in the session. Investors are likely to scrutinize any announcement regarding Khashoggi as any signs of instability in Saudi Arabia— the world’s top oil exporter and a big investor in financial markets— could have wide-ranging repercussions.

In Asia, MSCI’s broadest index of Asia-Pacific shares, excluding Japan, fell more than 1.3 percent on Tuesday. It comes after earnings season nerves dented Wall Street in the previous session.

Source: CNBC