LONDON â European markets looked set to begin the new week in negative territory as investors continue to monitor developments in the Middle East and a potential renewal of transatlantic trade tensions.
Stoxx 50 futures were expected to open 0.32% lower, with France's CAC 40 sliding almost 0.1%, Germany's DAX falling 0.27% and the Italian FTSE MIB down 0.31%.
The U.K.'s FTSE 100 is closed for the early spring bank holiday.
European automakers were seen between 1.2% and 2.2% lower in pre-market trading after U.S. President Donald Trump said Friday he would increase tariffs on cars and trucks from the European Union to 25%. The European Commission said it was keeping its options in terms of its response.
The threat comes despite a Supreme Court ruling in February striking down large parts of Trump's tariff agenda.
Meanwhile, President Trump also unveiled a new plan to "free" ships that have been unable to pass through the Strait of Hormuz. The initiative, Â dubbed 'Project Freedom', Â could involve 15,000 troops, guided missile destroyers, and 100 aircraft guiding commercial ships through the critical shipping channel.
The United Kingdom Maritime Trade Operations reported early Monday that a vessel had been struck by projectiles north of the city of Fujairah in the United Arab Emirates.
Oil prices edged lower in early dealmaking, with Brent crude â the global benchmark â down 0.8% to $107.38 a barrel, while West Texas Intermediate slipped 0.84% to $101.10.
In European corporate earnings, Danish jewelry maker Pandora is among the European companies set to update investors on their first quarter performances later.
