On Monday, European stocks looked set to follow the negative trend in Asia, led by news of escalating tensions in the Middle East and fears of a wider regional conflict. Last week, rumors of an Iranian attack on Israel raised security concerns, and now, after Iran launched an attack with some 300 drones and missiles, there are concerns about Israel's response. President of the United States of America Joe Biden told Israeli Prime Minister of Agriculture Benjamin Netanya that the United States would not be involved in a counterattack against Iran, which reduces the risk to a certain extent.
Read MoreMorning News: Nervous Markets Await Israel Response, Fed Outlook.