FX.co ★ European Shares Seen Tad Higher In Cautious Trade

European stocks are expected to open on a positive note on Wednesday, though volatility remains a possibility due to concerns over a potential broader conflict in the Middle East.

Earlier today, Iran announced that its missile attacks on Israel were concluded unless further provoked, following a barrage of approximately 180 ballistic missiles. Meanwhile, Israel and the U.S. have vowed to respond to Tehran's escalation.

Asian markets presented a mixed picture under the dual influence of eased monetary policies and escalating geopolitical tensions.

Japan's Nikkei declined nearly 2% amid concerns regarding the Bank of Japan’s policy outlook. Conversely, Hong Kong's Hang Seng surged over 5%, buoyed by China's recent series of stimulus measures. Chinese markets remain closed for a weeklong national holiday.

Gold experienced a slight dip in Asian trading but stayed close to its recent record highs.

Crude oil prices continued to rise, with Brent crude approaching $75 a barrel as investors remained cautious about potential supply disruptions.

The dollar maintained its most significant gain in a week following unexpected data showing a rise in U.S. job openings in August.

On the economic front, investors are likely to focus on speeches by ECB Vice President Luis de Guindos and Chief Economist Philip Lane, along with a report from payroll processor ADP on U.S. private sector employment for September. These events are seen as precursors to the more anticipated monthly U.S. jobs report, set to be released on Friday.

U.S. stocks fell overnight after Iran launched missiles at Israel in retaliation for Israel’s actions against Tehran's Hezbollah ally in Lebanon.

Economic concerns, including the potential impact of a strike by dockworkers at seaports across the U.S. East and Gulf Coasts, along with weak manufacturing data, further weighed on the markets.

The tech-focused Nasdaq Composite dropped 1.5%, the S&P 500 declined by 0.9%, and the Dow decreased by 0.4%.

European stocks reversed earlier gains to end lower on Tuesday, as fears of a broader Middle East conflict overshadowed the positive news that Eurozone inflation fell below the ECB's 2% target for the first time in three years.

The pan-European STOXX 600 fell by 0.4%. Germany's DAX dropped by 0.6%, France's CAC 40 decreased by 0.8%, while the U.K.’s FTSE 100 rose by 0.5%.