European Stocks Slump on Hawkish Fed Comments and Soaring Oil Prices

European equity markets are set to open lower on Monday, following hawkish comments from Federal Reserve Chair Kevin Warsh that revived expectations for a US interest rate hike next month.

In his Jackson Hole address on Friday, Warsh reaffirmed policymakers' commitment to returning inflation to their 2% target and warned that inflation isn't meaningfully slowing down. This has intensified concerns about inflation in the market.

The situation was further exacerbated by rising oil prices due to renewed tensions in the Middle East. The US military targeted Iranian rocket launchers over the weekend, contributing to the increase in oil prices.

In Europe, investors will be assessing German inflation data for August and Turkish Q2 GDP figures, as well as July unemployment data. However, there are no major earnings reports scheduled in Europe today.