European equity markets were poised to open lower on Monday, with the week beginning on a softer tone after hawkish remarks from Federal Reserve Chair Kevin Warsh reignited expectations of a US interest rate hike next month. In his Jackson Hole speech on Friday, Warsh cautioned that inflation is not slowing in a meaningful way and reiterated policymakers’ determination to bring inflation back to the 2% target.
Inflation worries were further amplified by a jump in oil prices, driven by renewed tensions in the Middle East after the US military struck Iranian rocket launchers over the weekend.
In Europe, investors will be watching German inflation data for August, as well as Turkey’s second-quarter GDP figures and July unemployment numbers. There are no major corporate earnings releases scheduled in Europe today.
In premarket trade, futures on both the Euro Stoxx 50 and the Stoxx 600 were down roughly 0.2%.
