European bourses are seen lower Tuesday as investors focused on talks between OPEC members and the political uncertainty mounting ahead of a key referendum in Italy.
The FTSE 100 should open 3 points lower at 6,796; the DAX is seen 19 points lower at 10,563 and the French CAC should start 1 point lower at 4,509.
OPEC oil producers are preparing for a crucial meeting on Wednesday where they aim to agree on a production cut. However, oil prices are trading lower as investors doubt that a deal will be reached. On Monday, OPEC technical teams reportedly failed to agree on any details for the proposed cuts.
Meanwhile, President Mario Draghi of the European Central Bank warned Monday that Britain will feel the pain from Brexit before the euro zone. Draghi also asked for clarity over the upcoming negotiations.
The view of the British government of a Brexit plan is to “have cake and eat it,” according to a memo seen by the Financial Times. However, British officials are worried that France might steal some business from Britain.
On the data front Tuesday, the Bank of England will publish its latest mortgage approval numbers.
South Korean shares retraced losses late Tuesday afternoon, as investors reacted to a televised speech by President Park Geun-hye offering to step down through a legal process, according to reports.
Park, who is embroiled in an influence-peddling scandal, apologized and said she would step down from her position in accordance with the law, asking legislators to aid her in handing over power with minimal political unrest, said Reuters.
The scandal broke out when reports said Park’s friend, Choi Soon-sil, who holds no post in the government, provided her advice on state affairs, suggesting Choi also had access to classified material related to national security and economic policies. Since then, hundred of thousands have protested in South Korea, calling on her to quit or be impeached.
The benchmark Kospi climbed 0.18 percent following Park’s speech after previously falling near 0.2 percent. At market close, the index gave up the gains to close flat. The Kosdaq index finished up 3.02 points, or 0.51 percent, at 596.07. The Korean won strengthened from levels near 1,170 to around 1,168.50 after the announcement.
Meanwhile, Japanese markets slipped in a mostly lower Asian trading session, despite the release of government data hinting at a stabilization in domestic demand.
The country’s seasonally adjusted unemployment rate was steady in October at 3 percent, the same level as August.
Household spending in Japan fell 0.4 percent on-year in October, but it fell at a slower pace than the median estimate for a 0.6 percent decline, according to Reuters.
Oil prices fell early on Tuesday on doubts that producer cartel OPEC will be able to hammer out a meaningful output cut during a meeting on Wednesday to rein in a global supply overhang and prop up prices.
International Brent crude oil futures were trading at $48.10 per barrel at 0102 GMT, down 14 cents, or 0.3 percent, from their last close.
U.S. West Texas Intermediate crude futures were down 19 cents, or 0.4 percent, at $46.89 a barrel.
The Organization of the Petroleum Exporting Countries (OPEC) is meeting officially in Vienna on Wednesday to discuss a planned production cut in an effort to curb overproduction that has dogged markets and more than halved prices since 2014.
With a high degree of uncertainty going into the last 24 hours before the meeting, oil price volatility is expected to be high.
“We expect intra-day volatility to ratchet higher again into tomorrow, with price action being entirely headline driven,” said Jeffrey Halley, senior market analyst at OANDA brokerage in Singapore.
There remains disagreement among OPEC-members over which producers should cut by how much, and a plan to bring non-OPEC oil giant Russia to participate has so far also failed.