European stocks are expected to start Tuesday’s session in the red, following on from the volatile session seen in Asia-Pacific markets.
The FTSE 100 is seen lower by 41 points at 7,141, while the German DAX is set to open down some 73 points at 11,442 and the French CAC 40 is expected to start down in the red by 27 points at 5,205; according to IG.
Meanwhile, stocks in Asia came under slight pressure as investors kept abreast of the ongoing talks between the U.S. and China. On Monday, President Donald Trump said that he could sign a deal in the near future, in regards to ending the trade war with China, Reuters reported.
Markets rose on Monday, after Trump said over the weekend that he would postpone the deadline – March 1 – that would have instigated fresh trade tariffs on the Asian nation.
While an agreement has yet to be secured, Trump stated that negotiators from both countries were “very, very close” to a deal materializing, the news agency added. On Tuesday, Asian stocks dipped into the red, as investors awaited further clarity on the matter.
Elsewhere, Brexit is expected to be front and center for European markets on Tuesday. On Monday, the British opposition Labour Party indicated that it would back calls for a “People’s vote” on the U.K.’s impending departure from the European Union, if parliament vetoed the party’s alternate Brexit proposal.
On top of that, sterling rose after Bloomberg reported that Prime Minister Theresa May was considering delaying the current deadline for the U.K. to leave the EU. The U.K.’s departure from the bloc is currently timetabled for March 29.
On the corporate front, PSA, BASF, Standard Chartered, Travis Perkins and Persimmon are all slated to publish earnings on Tuesday.
In central banking news, European Central Bank board member Yves Mersch is set to deliver a keynote speech at 3rd Annual Conference on “FinTech and Digital Innovation: Regulation at the European Level and Beyond” in Brussels.
No major economic data is scheduled for Tuesday.
Source: CNBC
