BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are seen opening broadly lower on Monday, even as London's FTSE 100 may rise at open due to surging crude oil prices amid renewed U.S.-Iran tensions.
A cautious undertone may prevail as Brent crude prices jumped above $90 a barrel after American forces targeted two rocket launches on Iran's Larak Island, killing and wounding several Iranian fighters and civilians.
Washington 'took limited, precise action against IRGC minelaying forces posing an imminent threat in the Strait of Hormuz,' the U.S. Central Command said.
Subsequently, Iran's Islamic Revolutionary Guard Corps (IRGC) said it launched attacks on U.S. military bases in Jordan.
Elevated U.S. bond yields may also keep investors on edge after Federal Reserve Chair Kevin Warsh leaned hawkish in his Jackson Hole speech.
Warsh's speech at the Jackson Holde symposium raised market expectations for an interest rate hike in September and again in December.
That said, upcoming August U.S. payrolls report on Friday and consumer price data due on September 11 may give a clearer view of the case for potential rate hikes.
Closer home, EU inflation data due this week may cement market expectations for another rate hike from the European Central Bank when it meets on September 10.
Asian markets were broadly lower ahead of the meeting of G20 finance ministers and central bank governors starting today in Asheville, North Carolina.
Official data showed today that factory activity in China contracted in August for a second straight month despite an uptick in export demand.
The dollar held steady near a two-week high, while two-year U.S. Treasury yields held at 4.36 percent after rising almost 12 basis points on Friday.
Gold fell 0.7 percent to $4,426 an ounce after tumbling about 3 percent on Friday. U.S. stocks ended firmly in the red on Friday amid bets that the Federal Reserve may hike interest rates soon to get sticky inflation under control.
Bond yields surged after Fed Chair Kevin Warsh said that underlying inflation is not slowing and vowed to bring it down closer to 2 percent, even if it causes pain for the economy in the short term.
The tech-heavy Nasdaq Composite dipped half a percent, the S&P 500 eased 0.3 percent and the narrower Dow finished marginally lower.
European stocks advanced on Friday as French stocks recovered from the previous session's sell-off and data showed Eurozone economic confidence improved to a seven-month high in August.
The pan-European STOXX 600 gained half a percent. The German DAX surged 0.8 percent, France's CAC 40 rallied 1 percent and the U.K.'s FTSE 100 edged up 0.3 percent.
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