Live Markets-Before the bell: Europe softer as oil climbs, tech drags

AstraZeneca AZN.L was set to fall after news late on Friday that its breast cancer pill failed to meet the main goal of improving progression-free survival in a late-stage trial, a week after the treatment received U.S. approval.

Exchange operators were also on the watchlist after Euronext ENX.PA Chief executive Stephane Boujnah told the FT he was open to a ‘big bang’ deal with rival Deutsche Boerse DB1Gn.DE. No conversations between the two groups are currently under way.

Shell SHEL.L, Repsol REP.MC, Eni ENI.MI rose 1-2% on Tradegate, as Brent rose back to around $107 a barrel, while in tech, ASML ASML.AS, Infineon IFXGn.DE, and STMicro STMPA.PA all slid around 3%.

European futures pointed to a weaker start to the week on Monday as oil resumed its climb after fresh Middle East strikes, while markets braced for a U.S. interest rate hike later this week and renewed volatility in AI stocks.

While surging crude prices could support energy stocks and help cap losses in Europe, chipmakers were lower in early trade after OpenAI and Anthropic called for a slowdown in development to manage risks and protect humanity.

AI-linked shares in Asia came under pressure and Nasdaq futures declined by more than 1%. Euro STOXX 50 .STOXX50E and DAX .GDAXI futures slid around 0.3%, and contracts on commodity-heavy FTSE .FTSE added 0.2%.

Treasuries meanwhile steadied in Asian hours with the 10-year yield down around 1 basis point at 4.9%. Markets are pricing in an 87% chance of a quarter-point Fed rate hike this week, according to CME's FedWatch Tool.