FX.co ★ European Stocks Set for Muted Open

European equity markets looked set for a muted open on Monday, as a fresh rise in oil prices intensified concerns over inflation and interest rates, prompting investors to adopt a cautious stance. Crude prices jumped after President Donald Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz, while Tehran maintained it would not soften its conditions for resuming traffic through the crucial shipping lane.

Global bond yields also moved higher, reflecting increased inflation risks and mounting expectations of further monetary policy tightening. With no major economic data releases or blue-chip corporate earnings scheduled in Europe on Monday, investors are instead focusing on preliminary inflation figures from across the region due later in the week. Labour-market data for the euro area, as well as for Germany, France, Italy and Spain, are also slated for release.

In premarket trade, futures on the Euro Stoxx 50 and the Stoxx 600 were little changed to modestly higher.