BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are seen opening on a positive note Monday as investors keep an eye on the latest developments in the Middle East and look forward to the Federal Reserve's upcoming rate decision and Chair Jerome Powell's press conference for directional cues.
Oil prices were up more than 1 percent after U.S. President Donald Trump on Saturday said the United States may carry out additional strikes on Iran's Kharg Island oil export hub 'just for fun'.
An Iranian military spokesperson warned that ports, docks and 'American hideouts' in the United Arab Emirates could be targeted.
Gulf Arab states reported new missile and drone attacks on Sunday after Iran threatened to widen its campaign. Amid rumors of his death, Israeli Prime Minister Benjamin Netanyahu allegedly posted a video of himself at a coffee shop.
After announcing plans to reveal a new coalition to escort ships through the Strait of Hormuz, U.S. President Donald Trump warned NATO's future is at risk if the allies don't assist in opening the ley oil shipping route.
Later today, European Union foreign ministers will discuss extending the bloc's naval mission Aspides to the Strait of Hormuz, even as German Foreign Minister Johann Wadephul voiced skepticism about the operation and the country's participation.
Besides geopolitical tensions, a Federal Reserve announcement on interest rates, fiscal second-quarter earnings from AI darling Micron and the highly anticipated annual NVIDIA GTC Developer Conference will be in the spotlight this week.
The Federal Reserve is widely expected to leave interest rates unchanged on Wednesday, with investors likely to focus on central bank officials' latest projections for rates and the economy.
As inflation risks rise, the chance of an easing by June has come down to just 26 percent from 69 percent a month earlier.
Micron's earnings report on March 18 will be watches for memory supply demand trends.
Nvidia is expected to show off the latest advances in chips and AI infrastructure at its annual developer conference at Silicon Valley, which is set to kick off in just a few hours.
Asian markets were broadly lower as the ongoing U.S.-Iran war entered its third week.
A slew of Chinese data released earlier in the day pointed to a firm start to 2026 despite external headwinds.
Meanwhile, senior American and Chinese economic officials concluded negotiations in Paris, focusing on agricultural trade, critical minerals access, and new trade management frameworks, ahead of a planned meeting between Trump and Chinese President Xi Jinping at the end of Mach. Trump has indicated the summit might be delayed.
Gold was little changed above $5,000 per ounce after paring a nearly 1 percent fall earlier in the session. The dollar nudged lower and the U.S. 10-year Treasury yields eased, increasing the appeal of non-yielding bullion.
U.S. stocks ended lower on Friday as investors digested mixed economic data and watched the escalating Middle East conflict.
U.S. GDP growth for the fourth quarter was revised sharply lower to 0.7 percent and consumer sentiment ebbed in early March on worries about higher energy costs, fueling stagflation fears.
A separate report revealed that consumer spending increased slightly more than expected in January.
The tech-heavy Nasdaq Composite fell 0.9 percent, the S&P 500 shed 0.6 percent and the Dow dipped 0.3 percent.
European stocks ended firmly in the red on Friday as hostilities in the Middle East showed few signs of easing, with U.S. President Trump calling Iranian regime leaders 'deranged scumbags' and adding he has the 'great honor' to kill.
The pan European Stoxx 600 declined half a percent. The German DAX dropped 0.6 percent, France's CAC 40 gave up 0.9 percent and the U.K.'s FTSE 100 eased 0.4 percent.
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