BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are seen opening lower on Monday as mass protests in France spiraled into riots, compounding an already elevated fiscal risk premium.
The euro fell against most of its Group-of-10 peers as a result of widespread protests in France and escalating tensions in Ukraine.
French President Emmanuel Macron has called for 'calm and order' after a major day of protests turned into rioting and looting on Saturday.
Brent crude futures traded about 2 percent lower but remained elevated near $108 a barrel amid escalating hostilities in the Middle East and Eastern Europe.
A Saudi helicopter crash near the border with Yemen due to a technical malfunction killed two crew.
An oil tanker caught fire and exploded after striking a naval mine in the southern part of the Strait of Hormuz, Iran's Islamic Revolutionary Guard Corps navy said.
Ukrainian attacks set an oil export terminal ablaze in St Petersburg on Sunday, as Kyiv launched more than 1,000 drones at Russia in one of the war's largest aerial assaults.
U.S. President Donald Trump accused Ukrainian President Volodymyr Zelensky of prolonging the war with Russia and said his decisions to suspend several Russian sanctions is an effort to keep Moscow at the negotiating table.
Traders are also bracing for a packed week of U.S. corporate earnings, with more than 70 S&P companies, including Tesla and Metea Platforms, set to report their financial results this week.
The AI-driven rally faces a crucial test, with investors likely to scrutinize AI infrastructure spending, profitability prospects and chip demand.
In economic releases, U.S. flash manufacturing and services Purchasing Manager's Index (PMI) readings along with readings on housing starts, pending home sales and weekly labor market data will be in the spotlight this week.
Asian markets were mixed, with AI spending concerns and elevated oil prices keeping investors on edge. China reported better-than-expected Q3 GDP growth, helping limit regional losses.
China's economy grew 4.5 percent year-on-year in the third quarter of 2026, beating market expectations of 4.4 percent growth.
Industrial production and retail sales both beat forecasts in September, but fixed asset investment remained weak, according to data from the National Bureau of Statistics.
The dollar index was little changed while gold edged up slightly to hover around $4,180 an ounce after Federal Reserve Chair Kevin Warsh voiced optimism about U.S. economic resilience and the impact of AI on economic growth and productivity.
Warsh said he won't prejudge what the U.S. central bank will do about interest rates at its upcoming policy meeting, suggesting the Fed would wait until December to raise rates.
U.S. stocks ended lower on Friday due to a broader sell-off in technology companies amid renewed concerns about debt-fueled AI infrastructure spending.
Inflation and rate hike worries also returned to the fore as U.S. crude oil futures spiked back above $100 a barrel for the first time in a month after Iran escalated attacks in the Strait of Hormuz and energy ceasefire between Russia and Ukraine collapsed.
In economic releases, data showed U.S. industrial production as well as import and export prices rose more than expected in September.
The tech-heavy Nasdaq Composite slumped 2.1 percent to reach its lowest closing level in a month, while the S&P 500 tumbled 1.1 percent and the narrower Dow dipped 0.3 percent.
The S&P 500 and the Nasdaq posted their worst week since June, reflecting mounting worries about how long the frenzy over the AI buildout will last.
European stocks closed higher on Friday to wrap up their best week since late June as strong earnings outweighed concerns over rising inflation.
The pan-European STOXX 600 surged 0.7 percent. The German DAX rallied 1 percent, France's CAC 40 rose 0.3 percent and the U.K.'s FTSE 100 added 0.4 percent.
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