FX.co ★ European Stocks Set for Weaker Open

European equity markets were poised to open lower on Monday, as the absence of a broader, long-term agreement between the US and Iran to end hostilities and fully reopen the Strait of Hormuz kept investors cautious. At the same time, European Central Bank Executive Board member Isabel Schnabel warned that the growing use of stablecoins—most of which are pegged to the US dollar—could undermine the international role of the euro and weaken some countries’ control over monetary policy. She also reiterated remarks made last week, arguing that the ECB should consider raising interest rates this month even if a peace deal between the US and Iran is reached. In premarket trading, futures on the Euro Stoxx 50 and the Stoxx 600 were both down around 0.3%, signaling a softer start for European markets.