European equity markets were poised for a weaker open on Wednesday, as oil prices extended their gains on the back of escalating tensions in the Middle East. The renewed rise in energy costs has intensified inflation concerns and reinforced expectations of further interest rate increases.
In the latest geopolitical developments, Iran reported that it had struck two US vessels and eight oil tankers in the Gulf, in retaliation for American attacks on five Iranian tankers near Kharg Island. The heightened conflict risk added to investor unease.
Market participants were also positioning ahead of the European Central Bank’s policy decision on Thursday. The ECB is widely expected to raise interest rates by 25 basis points, as it continues its efforts to curb inflation.
In corporate news, Dutch semiconductor equipment manufacturer ASML secured commitments from several major chipmakers to adopt its newest production technology, amid surging demand for more advanced AI hardware.
In premarket trading, futures on both the Euro Stoxx 50 and the Stoxx 600 were down roughly 0.4%.
