After ending the week in green, European stock markets are set to open lower on Monday over reduced expectations for aggressive rate cuts by the Federal Reserve in its upcoming meeting at the end of the month. So far, global markets’ sentiment continues to be dictated by the Fed as they look forward to the July 30-31 meeting.

In addition, escalating tensions in the Middle East following the capture of a British oil tanker in the Strait of Hormuz by Iran’s Revolutionary Guards could also weigh on financial markets at the start of this week.

UK politics are also expected to be in focus for European markets, with voting for the next Conservative Party leader closing later today. On Tuesday, Theresa May’s successor will be announced, bringing the attention back to Brexit once again.