European markets are set for a negative open amid earnings news and political developments in the U.S.
The Italian FTSE MIB is set to drop the furthest, seen opening 74 points lower at 22,129. The German DAX is expected to open 36 points lower at 12,078, while the U.K. FTSE is anticipated to open 18 points to the downside at 7,128. The French CAC is seen 16 points lower at 5,154.
Gary Cohn, President Donald Trump's top economic advisor, announced Tuesday that he would resign following disagreement with Trump over plans to slap tariffs on steel and aluminum imports. Cohn was viewed as a voice of reason in the White House and well liked by Wall Street.
The European Commission is to meet to discuss its response to the U.S. tariff plans – which would tax steel and aluminium imports by 25 percent and 10 percent respectively – for an undefined time period. If imposed, the tariffs would severely affect Europe's car industry.
Elsewhere in Europe, President of the European Council Donald Tusk will speak in Luxembourg at 13:15 CET on the European Union's draft guidelines for its future relationship with the U.K. post-Brexit.
In the U.K., Saudi Crown Prince Mohammed bin Salman is to begin a three-day state visit to London. He will meet U.K. Prime MinisterTheresa May, Foreign Secretary Boris Johnson and senior royals at Windsor Castle. Protests against his visit are planned.
Political stalemate continues in Italy as parties vie for the leadership of a governing coalition after Sunday's election which resulted in a hung parliament. The leader of Italy's far right Lega – the largest party within a center-right coalition in last week's vote – has said that he is the only option for prime minister. Meanwhile, former Prime Minister Silvio Berlusconi has put his name forward as the "coordinator of the centre-right" coalition, according to Reuters.
Several European corporates are to report full year results for 2017, including Telecom Italia and Russian oil producer Rosneft, as well as U.K. insurance group Legal & General and Rolls Royce.
Article source: CNBC.com