A look at the day ahead in European and global markets from

Gregor Stuart Hunter

Oil is back on the boil and equity markets are struggling to

find a floor after this week's selloff triggered by fresh blows

to the ceasefire in the Middle East. The U.S. has launched new

strikes against multiple targets in Iran, with President Donald

Trump vowing even more attacks if no peace deal is secured.

Brent crude rose 1.7% to $94.64 after Iran's Islamic

Revolutionary Guard Corps said on Thursday that they had

retaliated against U.S. air bases in Kuwait and Bahrain, and

threatened to target any vessel passing through the Strait of

Hormuz.

Equities across the region slid, with MSCI's broadest index

of Asia-Pacific shares outside Japan down 1.3%

with Taiwanese and Korean shares leading declines as AI

chipmakers fluctuated between gains and losses.

Some analysts have attributed the recent tech slump to

investor repositioning ahead of the upcoming SpaceX share

offering, which Reuters reported has drawn more than $250

billion of investor demand for what stands to be the

largest-ever IPO.

Oracle also rattled sentiment, unveiling spending

plans far beyond expectations and fuelling debt concerns -

sending its shares plunging 10% in after-hours trade.

The euro edged up 0.1% to $1.1544 against the U.S.

dollar ahead of the European Central Bank's June monetary policy

announcement later on Thursday, where it is widely expected to

hike rates.

The single currency held gains even as the flare-up in the

Iran conflict kept the U.S. dollar index holding firmly

at its strongest levels since ceasefire talks with Tehran began

in early April. Wednesday's hot U.S. inflation printhas nudged

market bets toward an October rate hike, according to CME's

FedWatch tool, though expectations remain finely balanced.

The yield on the U.S. 10-year Treasury bond was up 1.4 basis

points at 4.552%.

U.S. equity futures found tentative footing, with S&P 500

e-mini futures up 0.2% and on track to snap a two-day

losing streak. In early European deals, pan-region futures

slumped 0.8%, German DAX futures were off 0.6%

and FTSE futures fell 0.8%.

Key developments that could influence markets on Thursday:

Economic events:

Germany: Current account balance for April

Euro Zone: ECB monetary policy decision for June and press

conference

U.S.: PPI for May

Debt auctions

UK: 3-year government debt