European stocks are expected to open lower on Tuesday morning on rising tensions between North Korea and the United States.

The FTSE 100 is seen down by 3 points at 7,304; the DAX is set to start off by 12 points at 12,580 and the CAC 40 is expected to open lower by 1 point at 5,267.

Investors will take cues from Asian stocks, where shares dropped after North Korea’s Foreign minister said Monday that one tweet from President Donald Trump over the weekend was a declaration of war. As such, Pyongyang reserved the right to take countermeasures, which could include shooting down U.S. bombers even if they are not in North Korea’s air space.

In Europe, German Chancellor Angela Merkel has begun coalition talks with three other parties to build a new government, after the far-right AfD party beat forecasts and become the third largest presence in parliament. In Brussels, Brexit negotiations seemed to have resumed on a tough footing after Michel Barnier, the EU’s chief negotiator, said that they cannot discuss a transition deal, like U.K. Prime Minister Theresa May had asked, before settling the issues of citizens’ rights, the Irish border and an exit bill.

Meanwhile in Japan, minutes from the central bank’s last meeting showed Tuesday that the Bank of Japan (BOJ) will continue with its current monetary policy strategy. Policymakers showed signs of optimism given that inflation expectations stopped falling.

In the corporate world, Siemens is reportedly set to choose French rival Alstom for a rail merger, Reuters reported citing sources. The online retailer Boohoo.com is due to report interim results Tuesday.

On the data front, there will be U.K. Nationwide house price figures out at 7 a.m. London time. French and Italian consumer confidence numbers are due at 9 a.m. London time and final U.K. second-quarter gross domestic product data out at 9.30 a.m. London time.