FX.co ★ European Markets Poised to Open Sharply Lower

European equity markets were poised for a significant downturn on Friday, evidenced by futures indicating a 1.7% decline for the Euro Stoxx 50 and a 1.2% drop for the Stoxx 600 during early trading hours. This decline comes amidst rising tensions in the Middle East, unsettling global investor confidence. The steep falls follow Israel's preemptive strike on Iran, targeting its nuclear facilities and causing a dramatic intensification of the regional conflict. Iran retaliated with drone strikes and confirmed that senior military officials were among the casualties, heightening concerns over a potential broader conflict. Market participants will be closely monitoring key economic indicators, including definitive inflation data from Germany, France, and Spain, as well as the Eurozone's trade balance and industrial production statistics. In the corporate arena, there are no significant earnings announcements expected from the region today.