FX.co ★ European Stocks Set for Cautious Open

European equity markets were set for a subdued open on Tuesday as investors returned from the long holiday weekend. Attention is centered on US President Donald Trump’s looming deadline for Iran to agree to a deal to reopen the Strait of Hormuz or face potential strikes on key infrastructure, including power plants and bridges. Tehran has rejected a US ceasefire proposal, demanding instead an end to regional hostilities and the lifting of sanctions, among other conditions.

In Europe, investors will scrutinize composite and services PMI data from across the euro area for fresh signals on the region’s economic momentum. No major corporate earnings releases are expected. In premarket trade, Euro Stoxx 50 and Stoxx 600 futures were broadly unchanged.