Persistently high oil prices are expected to press on German equity trading through midweek, while investors are likely to stay cautious ahead of the European Central Bank's interest-rate decision on Thursday. Analysts anticipate the second rate increase of the year.
One hour before the opening bell, the X-Dax futures indicator for Germany's benchmark index signaled a half-percentage-point decline to 25,878 points compared with the previous session's close. The Eurozone flagship EuroStoxx 50 was also forecasting a similar half-percentage-point drop.
The renewed surge in crude prices is adding to investor unease. The price of a barrel of North Sea Brent crude is again approaching the $100 mark. The U.S. military said it had attacked and destroyed five Iranian crude oil tankers, describing them as part of a "shadow network" funding Iran's Revolutionary Guards.
On individual names, the news flow was thin. Deutsche Börse plans to issue €600 million in convertible bonds to finance general corporate purposes and liabilities. The operator's shares fell 1 percent in pre-market trading on Tradegate.
A downgrade of Beiersdorf shares by Deutsche Bank from "hold" to "sell" weighed on the skin-care company's stock, which dropped more than 2 percent in pre-market trading.
