BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are seen opening lower on Thursday as investors react to mixed earnings results from U.S. megacap companies and fret over rising borrowing costs amid signs the conflict in the Middle East will not be resolved quickly.
Tesla reported lower third-quarter profits and cut its annual capital expenditure forecast by a fifth.
Meta beat investor expectations for third-quarter revenue and boosted its bet on AI with spending outlook, but profits took a hit due to an $18 billion legal settlement with nearly all U.S. states.
IBM reported third-quarter results that handily beat Wall Street expectations while consulting revenue remained flat.
Elevated oil prices may keep investors on edge after a drone attack on Saudi Aramco's Shaybah oil field heightened concerns over further disruptions to energy supplies.
An attack on King Fahd International Airport in Dammam, Saudi Arabia, on Wednesday evening killed one resident and injured eight others.
As Houthi attacks intensify in Yemen, the U.S. State Department ordered non-emergency U.S. government staff and their family members to leave Saudi Arabia.
The New York Times reported, citing U.S. officials and others familiar with the deliberations, that the United States and Israel have drawn up specific plans for a possible new round of strikes against Iran after the U.S. midterm elections.
The proposed targets could include Iran's nuclear facilities, missile and drone capabilities, and energy infrastructure, according to the report.
Elsewhere, Russian forces attacked the Ukrainian capital Kyiv with ballistic missiles on Wednesday evening, hours after Moscow said it is 'ready in principle' to resume peace talks and U.S. President Donald Trump stated that ending Russia's war against Ukraine is now closer than ever before.
Asian markets were broadly lower, with benchmark indexes in Hong Kong, Japan and South Korea falling 2-3 percent amid lingering concerns over AI and uncertainty in the Gulf.
Brent crude futures jumped more than 2 percent above $111 a barrel, recouping losses from earlier this week.
The dollar index was little changed as focus shifted to central bank meetings in Japan, Canada, the U.S. and Europe, due next week.
Gold fell more than 1 percent to $4,090 an ounce after rising modestly on Wednesday to snap three-days of declines.
The U.S. Federal Reserve is set to announce its interest-rate decision on October 28. The rate hike odds have fallen to 16 percent for next week, but most economists expect a hike in December.
U.S. jobless claims data due on Thursday and the release of Flash Purchasing Managers Index on Friday may shape the Fed's next policy decision to some extent.
U.S. stocks closed higher overnight after AI server maker Super Micro Computer forecast quarterly revenue and profit margins above Wall Street expectations and Elon Musk confirmed SpaceX and Tesla have formed independent special committees to explore a potential merger.
The tech-heavy Nasdaq Composite climbed 1.1 percent, the Dow gained 0.7 percent and the S&P 500 added 0.6 percent.
European stocks advanced on Wednesday as strong corporate earnings outweighed hotter-than-expected U.K. inflation data, continued geopolitical uncertainty and concerns over the ongoing nationwide protests in France.
The pan-European STOXX 600 rose 0.9 percent. The German DAX rallied 1.4 percent, France's CAC 40 surged 1.1 percent and the U.K.'s FTSE 100 edged up 0.2 percent.
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