iShares MSCI Denmark ETF

EDEN

Market cap $201M

European Central Bank policymakers are likely to raise interest rates at least twice, starting at their ​next meeting in June, unless a favourable resolution ‌to the Iran conflict quickly drags energy prices to pre-war levels, two sources close to the discussion told Reuters.

The European Central Bank kept interest rates on hold on Thursday and warned that the war in Iran was ​fuelling an energy-led rise in euro zone inflation while ‌taking a toll on economic activity.

The euro zone economy expanded a meager 0.1% in the first quarter of the year, preliminary data showed on Thursday.

The euro zone economy saw faint growth in the first quarter, ​a preliminary estimate showed on Thursday, ‌offering the first snapshot of activity since the outbreak of the Iran conflict.

The European Central Bank and Bank of England both publish monetary policy decisions on Thursday. The decisions come as inflation spikes in the region, with fuel prices rocketing because of the Iran war.

European shares fell on Friday and were on track to end the week lower, as investors remained cautious amid limited progress toward resolving the Middle East conflict. Market participants also kept a close eye on corporate earnings for further direction.

European stocks are expected to open in negative territory on Wednesday as traders assess the Iran ceasefire extension and prospect of peace talks.

European stocks are expected to open broadly higher on Tuesday as investors try to gauge the direction of efforts to end the U.S.-Iran war.

European stocks are expected to start the new trading week on a somber note as traders assess a re-acceleration in U.S.-Iran tensions.

Europe's fundamentals are improving while America's decline, Kristina Hooper writes in a guest commentary.