BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are seen opening mixed on Tuesday as traders weigh a fragile ceasefire between Israel and Iran and look forward to upcoming ECB policy decision later this week for direction.
Geopolitical concerns eased somewhat after Israel and Iran agreed to halt attacks against each other following a series of mutual attacks from Sunday night, which marked the most serious escalation since the ceasefire in April.
U.S. President Donald Trump said that he had warned Israeli Prime Minister Benjamin Netanyahu that if Israel resumed its war with Iran, it could find itself fighting alone.
Iran has warned that it would resume strikes if Israel continued operations in Lebanon. Israel categorically rejected Iran's threats and said any Iranian attempt to link Lebanon and Iran and attack Israel will be met with great force.
Meanwhile, as inflation concerns mount, the European Central Bank (ECB) is widely expected to raise its three key interest rates by 25 basis points when it meets on Thursday. Analysts see the key rate at 2.5 percent or 2.75 percent by year-end.
Across the Atlantic, the June 16-17 FOMC meeting will be Kevin Warsh's first as chair. The U.S. central bank is not expected to move rates in this meeting, with investors likely to watch his tone and communication for early signals on the likely path of rates going forward.
U.S. inflation data is due later this week, with the headline inflation rate seen at 4.2 percent year-on-year in May, marking the highest reading in more than three years.
Asian markets were broadly higher this morning, with South Korea and Japan leading regional gains.
The dollar index eased a little bit while two-year U.S. Treasury yields stood at 4.158 percent, after having hit their highest since early 2025 at 4.201 percent in the U.S. trading session overnight.
Gold was marginally higher at $4,332 an ounce after touching a two-month trough at $4,268.39 on Monday.
Brent crude futures fell toward $93 a barrel, after having hit as high as $98 a barrel overnight.
U.S. stocks closed mostly higher overnight as chipmakers and artificial intelligence-linked names attracted buying after Friday's selloff.
Sentiment was also helped by easing geopolitical tensions after President Donald Trump claimed Israel and Iran are 'looking to do an immediate ceasefire' and that the final negotiations on a peace deal aimed at achieving a complete solution to the West Asia conflict are currently underway.
However, Trump cautioned that 'ignorance of stupidity' could derail efforts to reach a final agreement.
Iran's Tasnim agency reported that Tehran is prepared for a long-term war with Israel. Separately, Iranian Foreign Ministry spokesperson Esmail Baghaei held the U.S. responsible for recent ceasefire breaches.
The tech-heavy Nasdaq Composite gained 0.9 percent and the S&P 500 added 0.3 percent while the narrower Dow slid 0.2 percent.
European stocks closed lower on Monday as global bond yields surged on inflation concerns and rate hike expectations.
The pan-European STOXX 600 eased 0.2 percent. The German DAX dipped 0.6 percent and France's CAC 40 slipped 0.2 percent while the U.K.'s FTSE 100 finished marginally higher.
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