European Markets seen Higher before UK Election Results

The European financial markets are seen opening higher Tuesday morning. Traders are expecting the results of the U.K. Conservative Party’s ballot. European traders are expecting that Boris Johnson will win and be installed as the country’s next Prime Minister by Wednesday.

Johnson is not afraid to trigger a no deal Brexit and that has the British pound on the defensive. Despite this, the European equity benchmarks are pointing to a higher open when the bell rings.

As of 5:20 am GMT, futures are showing that the London benchmark FTSE 100 will open 25 points higher. The French CAC 40 is seen opening 26 points higher and the German DAX is seen up 72 points to open at 12,362.

Traders are also monitoring rising tensions in the Middle East between Iran and the United Kingdom. Last Friday, Iran seized a British oil tanker.

European Markets wait on U.K. Election Results

Later today, the ruling party in Britain is expected to announce that the former mayor of London, Boris Johnson, will likely win elections and be installed as the next Prime Minister of the United Kingdom. He is running against Foreign Minister Jeremy Hunt to see who will succeed Theresa May

The election result is expected to be released just before noon, today, with the winner becoming the prime minister on Wednesday.

Traders are worried that Johnson will pull the United Kingdom out of the European Union with or without a deal on October 31. This will be a good thing for either the economy of the European Union or the British economy.