BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are seen opening on a cautious note on Wednesday amid renewed Middle East tensions and investor anxiety ahead of the U.S. Federal Reserve meeting.
The U.S. and Saudi forces struck Tehran-backed targets in Iran and Tehran fired missiles at U.S. bases, reviving concerns over energy supply disruptions.
The Federal Reserve is widely expected to leave policy rates unchanged later in the day, with traders looking for signals about future meetings.
Market participants also await earnings from the 'Magnificent Seven' members Microsoft and Meta later in the day for direction following record Q2 earnings from SK Hynix earlier in the day.
Shares of the Korean chipmaker plummeted 17 percent despite the company reporting a six-fold increase in quarterly earnings amid surging demand for its advanced memory chips.
Asian markets were mixed, with AI valuation concerns and fresh U.S.-Iran tensions keeping investors on edge.
The dollar eased and gold was little changed at $4,028 an ounce amid considerably uncertainty concerning the outcome of the Federal Reserve's monetary policy meeting later in the day.
Brent crude futures jumped nearly 4 percent toward $88 a barrel, snapping a three-day losing streak as hostilities continued in the Middle East and industry data pointed to continued tightness in global oil supplies.
The U.S. Central Command said Iran had launched multiple ballistic missiles targeting U.S. troops across the Middle East that were successfully intercepted.
Saudi Arabia said it intercepted drones launched from Iraq and a Saudi tanker came under Houthi attack, underlining persistent regional tensions.
Iran reportedly rejected Oman's proposal for shared 50-50 control of the Strait of Hormuz, maintaining that it 'will accept no formula' other than full control of the inbound shipping lane and part of the outbound route.
Overnight, U.S. stocks ended mostly higher following stronger earnings results from the likes of Coca-Cola and Sherwin-Williams.
The Dow surged 1 percent to extend gains for the third straight session and the S&P 500 edged up 0.2 percent as falling crude oil prices helped to pull Treasury yields lower in the bond market.
The tech-heavy Nasdaq Composite slid 0.2 percent due to concerns about Chinese competition and the funding of the AI boom.
European stocks rose on Tuesday as upbeat earnings results offset U.S. President Trump's warning that Washington could target key Iranian infrastructure, including 'Kolang Mountain,' major bridges, and power plans if negotiations fail.
The pan European Stoxx 600 advanced 0.4 percent. The German DAX rose 0.4 percent, France's CAC 40 gained 0.6 percent and the U.K.'s FTSE 100 added 0.8 percent.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
