(For a Reuters live blog on U.S., UK and European stock
markets, click or type LIVE/ in a news window)
April 2 (Reuters) - Futures tracking Europe's main stock
indexes fell more than 1% on Thursday as hopes of a quick end to
the Middle East conflict faded after U.S. President Donald Trump
vowed more strikes on Iran.
Futures tracking the pan-European STOXX 600 index .
slid nearly 2% by 0636 GMT, with contracts tracking Germany's
DAX and France's CAC 40 index down 1.7% and
1.6%, respectively.
Market sentiment weakened after Trump said "we're going to
hit them extremely hard over the next two to three weeks. We're
going to bring them back to the Stone Ages where they belong."
Brent crude wizzed past $100 a barrel, up nearly 7%.
Oil linked stocks and cyclicals such as industrials and banks
will be in focus when market opens.
The STOXX 600 jumped over 2% on Wednesday after Trump stated
that Washington would wind up its hostilities with Iran
imminently, reflecting the volatility investors have had to
navigate for over a month.
A prolonged delay to reopening of the Strait of Hormuz, a
strategic waterway for major European imports, will continue to
pressure equities and reinforce already heightened inflation and
growth fears.
Interest rate futures are pricing in at least two interest
rate hikes of 25 basis points each by the end of this year,
according to LSEG-compiled data. Markets had been pricing in no
change to monetary policy by the European Central Bank before
the war.
Among individual movers, Novo Nordisk's shares
will be eyed after U.S.- based rival Eli Lilly's ( LLY )
weight-loss pill got approval by the U.S.-Food and Drug
Administration.