FX.co ★ European Markets Poised to Open Lower

European equity markets were poised to open the week on a weaker footing as investor sentiment dampened due to escalating tensions in the Middle East. During the weekend, the United States conducted strikes on three Iranian nuclear sites, aligning with Israel in its ongoing conflict with Iran. This move caught markets off guard, particularly after President Donald Trump had indicated on Friday that a decision might be forthcoming "within the next two weeks," leading to earlier hopes for diplomatic resolutions. Investors are now vigilant for any potential retaliatory actions from Tehran, which could include threats to U.S. personnel or disruptions in oil transport through the Strait of Hormuz—an event that could unsettle global energy markets. In Europe, focus will shift to preliminary Purchasing Managers' Index (PMI) data for manufacturing and services for June, which will provide new insights into the region’s economic perspective. In premarket trading, futures on the Euro Stoxx 50 and Stoxx 600 were both approximately 0.5% lower.