European equity markets were poised to open sharply lower on Monday, as renewed tensions in the Middle East and mounting expectations of higher interest rates weighed on investor sentiment. Iran and Israel exchanged missile strikes despite President Donald Trump’s calls for both sides to halt hostilities and resume peace negotiations. The escalation drove oil prices higher, intensifying inflation concerns and further clouding the global economic outlook.
At the same time, global equity markets came under pressure from rising US Treasury yields after stronger‑than‑expected US employment data reinforced expectations that the Federal Reserve could raise interest rates later this year. In Europe, investors will focus on German factory orders, while the corporate earnings calendar remains relatively light. In premarket trading, Euro Stoxx 50 futures were down 1.5%, and Stoxx 600 futures were lower by 1.3%.
