European markets are set to open higher on Tuesday as investors prepare for an expected interest rate cut from the U.S. Federal Reserve. The FTSE 100 is seen around 18 points higher at 7,725, the DAX is set to climb by around 29 points to 12,446 and the CAC 40 is expected to open around 13 points higher at 5,614. The U.S. central bank is widely expected to lower borrowing costs this week by a quarter point for the first time since the height of the financial crisis. Meanwhile, U.S. and Chinese negotiators are set to resume face-to-face trade talks on Tuesday, though expectations of a significant breakthrough this week remain low. Stocks in Asia edged higher in Tuesday afternoon trade as investors await developments from the talks, while the Bank of Japan also opted to keep monetary policy steady. Back in Europe, the pound hit a 28-month low on Monday as fears of the U.K. leaving the European Union without a deal escalated. Prime Minister Boris Johnson said the current divorce deal was dead and cautioned that unless the EU agreed to renegotiate, Britain would leave without a deal on October 31. The pound is currently trading around $1.2129. London Stock Exchange Group shares hit all time highs on Monday following its $27 billion bid to buy financial data firm Refinitiv, while Just Eat shares soared ahead of a proposed merger with rival Takeaway.com. Earnings are also in focus this week, with BP reporting earnings before the bell on Tuesday. Bayer confirmed its outlook for 2019 but struck a slightly less optimistic tone. The German pharmaceutical giant reported earnings before tax, depreciation and amortization (EBITDA) before special items advancing by 25% to 2.9 billion euros. The company now faces 18,400 lawsuits in connection with its weed killer Roundup. Lufthansa posted a drop in second-quarter earnings on rising fuel costs and price wars, with adjusted earnings before interest and tax (EBIT) falling to 754 million euros from 1 billion euros a year earlier. Source: CNBC
