European Shares Seen Tad Lower At Open

(RTTNews) - European stocks may open flat to slightly lower on Monday as the deadly conflict between Israel and Iran entered its fourth day, with both sides firing new waves of missiles overnight.

Israeli military claimed its attack on Iran eliminated high-value targets. Iranian authorities confirmed damage to four critical buildings at the Isfahan uranium conversion facility.

U.S. President Donald Trump told reporters at the White House on Sunday that he believed it's possible Israel and Iran could reach an agreement to end their conflict, though the fighting may continue before they broker a peace deal.

Meanwhile, leaders will hold talks on the war in Ukraine and spiraling conflict in the Middle East as they gather at a major global summit in Canada.

British Prime Minister Keir Starmer has said targeting Moscow with further action would "undoubtedly" form part of talks at the international summit this week if the Kremlin continues to resist calls for an unconditional ceasefire.

The focus also remains on a slew of central bank decisions due this week. The Bank of Japan holds a policy meeting on Tuesday and is widely expected to hold rates at 0.5 percent while leaving the door open for tightening later this year.

The Swiss National Bank meets on Thursday and is expected to cut rates by at least a quarter point.

The Federal Reserve announces its decision on Wednesday, with investors looking for any hints about whether the U.S. central bank will lower rates in the coming months.

Central banks in Norway and Sweden will also announce their interest-rate decisions this week.

Asian markets were broadly higher after the release of mixed macro data from China, with factory output growth hitting a six-month low in May, while retail sales picked up steam.

The dollar held steady in Asian trade and yields edged up slightly while oil prices were up nearly 1 percent after last week's 13 percent surge. Gold dipped slightly to hover below $3,430 per ounce.

U.S. stocks fell sharply on Friday as a deadly Israeli strike on Iranian nuclear facilities and Iran's retaliation heightened tensions in West Asia.

In economic releases, a measure of U.S. consumer sentiment rose by the most since January 2024 and short-term inflation expectations showed a marked improvement.

The Dow plummeted 1.8 percent, the tech-heavy Nasdaq Composite tumbled 1.3 percent and the S&P 500 declined 1.1 percent.

European stocks closed lower on Friday as heightened Middle East tensions offset encouraging inflation data from Germany and France.

The pan-European STOXX 600 declined 0.9 percent, briefly hitting its lowest level in three-weeks.

The German DAX lost 1.1 percent, France's CAC 40 shed 1 percent and the U.K.'s FTSE 100 gave up 0.4 percent.