European stocks set for a lower open as global markets slip
According to the CNBC European stocks are set to open in the red Tuesday, as investors keep abreast of market news and await any further developments surrounding Brexit. The FTSE 100 is seen 14 points down at 6,987, the CAC 40 is set to open 14 points lower at 4,965, while the DAX is poised to start the session off 49 points at 11,184, according to IG.
Markets in Europe are expected to follow Asia’s downbeat session, after news emerged that Nissan’s Chairman Carlos Ghosn was arrested yesterday, over allegations concerning financial misconduct. Nissan released a statement on Monday, which said that “over many years” Ghosn and board director, Greg Kelly, had been under-reporting compensation amounts to the Tokyo Stock Exchange securities report. The autos giant added that there had been a number of other “significant acts of misconduct” that had been unearthed. During Europe’s Monday session, Renault shares sank – hitting their lowest level in three years.
On Tuesday, shares of Nissan reacted to the news, with the stock down over 5 percent during the session. Investors in Europe will likely be keeping a close eye on the stock in the coming days, as new information emerges. Market sentiment is further dampened from a weak Monday session on Wall Street, which saw the Dow Jones Industrial Average tumble almost 400 points by the close, as tech stocks took a beating.
Switching focus, Brexit continues to keep markets busy, as the U.K. government is put in the spotlight, after a series of resignations and a dramatic fall in the currency took place last week. In spite of the opposition surrounding the current draft withdrawal agreement, Prime Minister Theresa May is continuing to stand her ground on the matter, telling business leaders that this deal puts the country’s economic success above everything else.
The European Union is expected to hold a summit to discuss this agreement over the coming week, while fears that May could be facing a possible vote of no-confidence hangs in the air. Sticking with politics, investors will also be keeping an eye on any news surrounding U.S.-China trade relations, as a meeting between leaders of both nations draws closer.