European markets set for lower open as oil prices surge; ECB and BOE decisions ahead

Hannelore Foerster | Bloomberg | LONDON — European stocks are expected to open in negative territory on Thursday as investors digest the latest reports on the Iran war and await more earnings and central bank decisions. The U.K.'s FTSE index is seen opening 0.1% lower, Germany's DAX down 0.7%, France's CAC 40 down 0.5% and Italy's FTSE MIB down 0.7%, according to data from IG. Global investors are keeping an eye on oil prices after Brent crude hit a wartime high, past $126 a barrel , following a report that the U.S. military would brief President Donald Trump on potential action against Iran, raising fears that armed conflict could resume, and that the blockade of Iranian ports would continue. Axios reported that the U.S. Central Command was set to present Trump plans for possible military action against Iran, citing two sources with knowledge of the matter. June futures for international benchmark Brent crude rose 6.84% to $126.10 a barrel as of 12:22 a.m. ET Thursday, while U.S. West Texas Intermediate added 3.14% to $110.24. Central bank action will be in focus later with the European Central Bank and Bank of England both poised to deliver their latest monetary policy decisions on Thursday. Neither bank is expected to change interest rates but their forward guidance will be closely watched, given the ongoing war in Iran. …