European stocks are expected to open lower for a second consecutive session as political concerns linked to elections in France and Italy continues to weigh on sentiment.
Basic resource and energy stocks are expected to drive the FTSE 100 into a modest 7 point advance at the bell, but benchmarks in Germany, Paris and Milan are all called lower at the open as investors await key earnings from BP plc BP and keep a close eye on developments in government bond markets.
Overnight in Asia, shares around the region drifted lower, following on from a softer session on Wall Street, with the MSCI Asia ex-Japan index slipping 0.07% by 06:45 GMT. Japan's Nikkei 225 fell by 0.35% to 18,910.78 points, with market direction once again driven by the yen, which firmed against both the U.S. dollar and regional currencies to hold down export stocks and keep the benchmark in the red.
Safe haven flows linked to both the French Presidential elections, where far-right candidate Marine Le Pen is polling strongly enough to make it to the second round of voting on May 7, drove investors into the Japanese currency, which traded as high as 111.59 against the U.S. dollar before paring gains later in the session.
All three U.S. equity benchmarks ended Monday in the red as energy shares held down gains and investors questioned the priorities of President Donald Trump's new administration, which appears to be favouring changes in healthcare and foreign policy over tax reform and job creation.
Early indications from U.S. futures prices suggest another slip at the start of trading Tuesday, with the Dow falling 7 points, the S&P 500 1.5 point and the Nasdaq 2.5 points.
