Adds new blog post

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

EUROPE BEFORE THE BELL: SEEING RED

European futures are indicating sharp declines at Monday's open as inflation worries have taken hold of markets, with oil prices and bond yields rising again.

Euro STOXX 50 futures STXEc1 are down 1.3%, and DAX FDXc1 futures are 1.2% lower, while FTSE FFIc1 futures were somewhat better off, dipping 0.5%.

The latest developments in the Middle East remained top of mind, fuelling inflation fears and driving up expectations for interest rate hikes from central banks around the world this year.

A drone strike caused a fire at a nuclear power plant in the United Arab Emirates, while Saudi Arabia reported intercepting three drones, as U.S. President Donald Trump warned that Iran must act "fast" to reach a deal. All the while, the crucial Strait of Hormuz is still virtually shuttered.

In corporate news, Anglo American AAL.L said on Monday it has agreed to sell its steelmaking coal mines in Australia to UK-based miner Dhilmar, while steelmaker Thyssenkrupp TKAG.DE said it will close its production site in Terre Haute, Indiana by end-March next year under an overhaul of its automotive unit.

(Sophie Kiderlin)

*****

EARLIER ON LIVE MARKETS:

BONDS GET A TASTE OF OIL'S DEMAND DESTRUCTION CLICK HERE