BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks may open flat to slightly higher on Tuesday as investors weigh Middle East tensions and look ahead to Thursday's ECB meeting, with a 25-basis-point interest-rate hike fully priced in by markets.
While Friday's robust U.S. report bolstered expectations for a Federal Reserve interest rate hike at the next policy meeting scheduled for September 15-16, the decision could hinge on CPI and PPI prints due this week.
U.S. stock futures were mixed due to rising trade tensions between the U.S. and Canada.
With no sign of a trade deal on the horizon, Canada's retaliatory tariffs of 15 percent to 50 percent on hundreds of American goods are set to take effect today.
Sharpening the trade standoff with Canada, U.S. President Donald Trump on Monday threatened to block the sale of Bombardier jets in the U.S.
On the earnings front, Oracle and Adobe are due to unveil their earnings results on Thursday, with investors looking for fresh insights into AI infrastructure spending and its implications for software companies.
Asian markets were mixed due to renewed inflation and interest-rate concerns. South Korea's Kospi was up more than 1 percent amid continued strength in semiconductor stocks.
China's export growth accelerated in August while imports also remained strong, customs data showed today, fueling tensions ahead of a crucial meeting in Washington this month between Xi Jinping and Donald Trump.
Gold rose half a percent to $4,430 an ounce due to a weakening U.S. dollar on fiscal concerns.
Brent crude futures rose toward $98 a barrel, hitting a six-week high on growing risks of a prolonged conflict in the Middle East.
Saudi Arabia's Jazan refinery was reportedly hit again Monday in what is likely to be another Houthi attack on one of the Red Sea's largest oil processing plants, but the damage was limited.
Iranian Parliament Speaker Mohammad Baqer Qalibaf has warned the U.S. that any new U.S. attacks on Iran's oil and gas assets will draw a reciprocal response, stressing that energy infrastructure across the Persian Gulf, including U.S. oil and gas facilities, are vulnerable.
Separately, Mohsen Rezaei, a senior Iranian security official, has warned that if the U.S. continued to wage 'economic warfare' against Iran, it will be met by a maritime exclusion zone across the Persian Gulf to the blockade perimeter.
Traders also watched for details of an Iranian deal with Oman to manage shipping through the Strait of Hormuz.
U.S. stock markets were closed on Monday for Labor Day holiday.
European stocks ended mixed on Monday due to inflation worries and political unrest in Germany.
The pan European Stoxx 600 ended little changed. The German DAX slipped 0.2 percent and the U.K.'s FTSE 100 eased 0.1 percent while France's CAC 40 rose 0.3 percent.
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