European markets seen mostly lower on German political uncertainty

European markets seen mostly lower on German political uncertainty
European markets seen mostly lower on German political uncertainty

European equities are expected to open mostly lower on Tuesday morning with investor sentiment curbed by a political impasse in Germany.

The FTSE 100 is seen up by 3 points at 7,389; the DAX is set to open lower by 9 points at 12,053 and the CAC 40 is expected to start lower by 5 points at 5,338, according to IG.

Germany could head to fresh elections after coalition talks failed to produce a new government. Chancellor AngelaMerkel said Monday evening that she would prefer a new vote to a minority government. However, German President Frank-Walter Steinmeier, who has the power to call for new elections, said that political parties owed it to voters to try to form a government.

In Asia, equities moved higher following strong economic data in the U.S. and the dollar was trading close to a one-week high against a basket of currencies as the political uncertainty weighed on the euro.

Meanwhile, European ministers have selected Paris and Amsterdam as the new headquarters for the European Banking Authority and the European Medicines Authority, respectively. These agencies have to leave London given the U.K.'s decision to end its EU membership.

In corporate earnings, Enel, Easyjet and Kingfisher are among the companies reporting Tuesday. Elsewhere, Uber is set to buy up to 24,000 self-driving vehicles from Volvo, according to Reuters. And BP and ENI are reportedly interested in exploring Iraq's Majnoon oilfield that Royal Dutch Shell intends to leave next year.

Looking at data, there will be U.K. public sector borrowing figures at 09.30 a.m. London time and the Confederation of British Industry is releasing its industrial trends order survey at 11 a.m. London time.

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CNBC

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