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BEFORE THE BELL: OIL SURGE, HIGHER YIELDS KEEP EUROPE CAUTIOUS

European shares were set for a cautious open on Monday as a jump in oil prices and rising yields kept investors on edge after another escalation in the Iran conflict, while last week's selloff in global technology stocks also weighed on sentiment.

Euro STOXX 50 .STOXX50E, DAX .GDAXI and FTSE .FTSE futures fell 0.1-0.3%, while Brent LCOc1 crude briefly climbed above $91 a barrel, reviving inflation concerns and pushing Germany's two-year government bond yield DE2YT=RR to a two-year high just days before Thursday's ECB policy meeting.

Nasdaq futures edged higher, however, signalling a steadier start on Wall Street after Friday's retreat, as investors geared up for earnings this week from Alphabet GOOGL.O, Intel INTC.O and Tesla TSLA.O.

Energy stocks were set to be among the main gainers in Europe, with Equinor EQNR.OL, Eni ENI.MI and TotalEnergies TTEF.PA up around 1-2% in premarket trading.

Prysmian PRY.MI jumped 4.5% after the Italian cable maker announced a $6.4 billion supply agreement with Molex linked to data-centre infrastructure, potentially supporting sentiment towards European companies exposed to the AI investment theme.

Ryanair RYA.I was down around 2.5% lower after the airline warned summer fares were likely to be modestly below last year's levels and reported quarterly profit below expectations.

The wider European travel and leisure sector .SXTP is already faces uncertainty linked to geopolitical tensions and higher fuel costs. Lufthansa LHAG.DE was down 1.1% premarket.

In M&A, Segro SGRO.L rejected a second improved takeover proposal from U.S. logistics property group Prologis PLD.N, which valued the British warehouse landlord at about 13.5 billion pounds.

(Danilo Masoni)

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