European markets are set to open mixed on Wednesday morning as political uncertainty takes center stage once again.
The FTSE 100 is seen up by 13 points at 7,539; the German DAX is expected to start lower by six points and the CAC 40 is set to open 10 points off at 5,295.
Despite positive data coming out of China overnight, where factory activity grew at a steady pace, investors in Europe are likely to focus on politics.
A YouGov poll showed late Tuesday that U.K. Prime Minister Theresa May could fall short of winning an overall majority at next week’s general election. She decided to call a snap election to strengthen her parliamentary position and have more power in Brexit negotiations with the EU but her gap from the Labour party has significantly narrowed over the past few days.
Meanwhile, France and Germany want to agree on a new common corporation tax system before elections for the French National Assembly next month, the German Finance Minister Wolfgang Schaeuble said on Tuesday, according to Reuters.
In the corporate world, Metro bank and Deutsche Boerse are due to report Wednesday.
Ireland has launched an IPO on its state-owned Allied Irish Banks on Tuesday, in what’s seen as the largest bank listing since 2008. In Italy, the sector continues to be under pressure as reports indicate that Banca Popolare di Vicenza and Veneto Banca might be wound down.
Investors will also be watching out for euro zone inflation data due at 10:00 a.m. London time.
Source: CNBC
