European markets to open mostly lower as Fed decision, Middle East conflict in focus

Good morning and welcome to CNBC’s live blog covering European financial market action and the latest regional and global business news, data and earnings.

Futures data from IG suggests sharp falls across European markets at the open, with London’sFTSElooking set to open 52 points lower at 8,827, Germany’sDAXdown 245 points at 23,447, France’sCAC 40down 75 points at 7,665 and Italy’sFTSE MIB 329 points lower at 39,568.

Global investors continue to assess ongoing fighting between Israel and Iran tensions after continued missile attacks and airstrikes on Monday.

Oil prices have risen on supply worries, and the price of gold has also increased amid a flight to safe haven assets after the conflict erupted last week.

Those prices rose further overnight, and U.S. stock futures turned lower, after U.S. President Donald Trump signaled a further escalation in attacks could be coming as he urged Iranians to evacuate Tehran.

— Holly Ellyatt

The U.S. Federal Reserve’s latest monetary policy decision is due Wednesday afternoon. Fed funds futures are pricing in an almost 100% likelihood that the central bank will keep rates unchanged, as perCME’s FedWatch tool,despite U.S. President Donald Trump’s continued pressure on Fed Chief Jerome Powell for a rate cut.

Investors will be keeping a close eye on Powell’s post-meeting comments and for the central bank policymakers’ forecast on rate policy, as the Federal Open Market Committee will be sharing members’ “dot plot” of rate expectations.

In Europe, U.K. investors will be keeping a close eye on inflation data from the U.K. for May, with economists expecting the consumer price index to have risen 3.4% in the year to May. Elsewhere, Sweden’s Riksbank publishes its latest interest rate decision on Wednesday.

There are no other data or major earnings reports due.

— Holly Ellyatt