BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European shares are seen opening sharply lower on Friday as trade uncertainties and escalating geopolitical tensions sparked flight to safety.
Israel declared a state of emergency after conducting 'pre-emptive' strikes against Iran, targeting its nuclear plant and military sites.
Iran's Supreme Leader Ayatollah Ali Khamenei has vowed 'severe punishment' against Israel while the Trump administration has sought to distance itself from the conflict, adding its top priority is protecting American forces in the region.
Meanwhile, markets remain cautious on the U.S.-China trade deal.
The specifics of the latest U.S-China framework agreement and details on how it will be implemented remain unclear.
It appears that there may still be significant disagreements and some details are yet to be worked out.
The International Monetary Fund (IMF) has issued a cautionary note, signaling that the brief rebound in global trade-fueled by firms rushing to beat U.S. tariffs-is now losing steam and the global economic outlook remains clouded by uncertainty.
In economic releases, trading later in the day may be impacted by industrial production and foreign trade from the euro area, final inflation figures from Germany and France, and preliminary readings on U.S. consumer sentiment and inflation expectations.
Asian markets traded lower, with Japan and South Korea leading regional losses, led by a sell-off in U.S. equity futures.
Gold jumped more than 1 percent to $3,422 per ounce, while Brent crude futures were up 8 percent at $74.91 a barrel.
Overnight, U.S. stocks recovered from an early slide to end modestly higher, buoyed by a strong rally in Oracle shares and data showing that producer price inflation rose less than expected in May.
The dollar hit a three-year low and U.S. 30-year yields approached the 4.8 percent mark after a solid sale of long-term Treasuries.
The Dow gained 0.2 percent and the S&P 500 added 0.4 percent to reach three-month closing highs while the tech-heavy Nasdaq Composite edged up by 0.2 percent.
European stocks ended mostly lower on Thursday, with renewed trade and geopolitical tensions weighing on markets. The pan European STOXX 600 declined 0.3 percent.
The U.K.'s FTSE 100 rose 0.2 percent as downbeat GDP data spurred hopes the Bank of England may cut interest rates again soon. France's CAC 40 slid 0.1 percent and the German DAX fell 0.7 percent.
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