European stocks to open lower amid political turmoil in Italy

Big 5

European stocks are set to open lower on Tuesday morning, as investors monitored the looming prospect of early elections in Italy, according to CNBC.

The FTSE 100 is seen five points lower at 7,692; the CAC is expected to open off around 13 points at 5,493; while the DAX is poised to start down 50 points at 12,829, according to IG.

In Asia, stocks were seen on the defensive on Tuesday. MSCI’s broadest index of Asia-Pacific shares, excluding Japan, was off around 0.3 percent after three consecutive sessions of gains.

Back in Europe, Italy’s anti-establishment parties abandoned plans to form a coalition government Monday after the country’s president refused to accept a controversial choice for economy minister.

That raised the possibility of snap polls, with market participants fearful that another election campaign could focus on Rome’s continued membership of European institutions.

Adding to heightened geopolitical uncertainty in the region, Spanish Prime Minister Mariano Rajoy is scheduled to face a vote of confidence later in the trading week.

On the data front, Italian and French consumer confidence data for May are scheduled to be released at around 9 a.m. London time.

Elsewhere, oil prices were mixed Tuesday, amid rising expectations that major producers could soon reverse some of their ongoing production cuts.

Brent crude futures traded at around $75.63, up 0.4 percent while U.S. WTI stood at $66.79, down around 1.6 percent.