Negative sentiment is anticipated to dominate European stock markets on Tuesday morning following a technology-led plunge in Asian indices that originated from Wall Street. Progress in resuming oil supplies via the Strait of Hormuz and the potential for additional declines in crude prices could however limit any downside. Attention will center on U.S.-Iran peace negotiations, political developments in the United Kingdom, and PMI data expected from the region.

Wall Street finished mixed on Monday as gains from oil supply progress were offset by losses in major technology names. The Dow Jones Industrial Average climbed 0.29 percent to end at 51,712.71. The S&P 500 eased 0.37 percent to close at 7,472.79. The Nasdaq Composite fell 1.3 percent to 26,166.60. Declines in SpaceX and Alphabet weighed on overall sentiment.

Leading European markets closed mostly higher on Monday as lower energy costs lifted mood. The U.K.'s FTSE 100 advanced 0.72 percent to finish at 10,437.85. Germany's DAX rose 0.62 percent to 25,139.69. Switzerland's SMI gained 0.54 percent to 13,848.51. The Stoxx-50 added 0.35 percent to 6,315.06. France's CAC 40 slipped 0.25 percent to 8,400.11.

European stock futures point to broad weakness. The DAX Futures (Sep), FTSE 100 Futures (Sep), and Stoxx 50 Futures (Sep) are each trading more than one percent below flat. The CAC 40 Futures (Jul) is down 0.77 percent while the SMI Futures (Sep) is 0.71 percent lower.

U.S. stock futures are also in negative territory. The US 30 (DJIA) is off 0.33 percent and the US500 (S&P 500) is 0.97 percent below flat.

Asian markets are trading sharply lower in line with Wall Street losses as technology stock selling pressured sentiment. Concerns over potential Federal Reserve rate hikes added to caution. South Korea's KOSPI dropped 8.1 percent. Japan's Nikkei 225 fell 2.97 percent. Hong Kong's Hang Seng declined 1.67 percent. China's Shanghai Composite shed 1.1 percent. DJ New Zealand eased 0.75 percent. Australia's S&P ASX 200 lost 0.37 percent. India's Nifty 50 edged 0.07 percent higher.

With a hawkish Federal Reserve outlook and easing Middle East tensions, the dollar holds near flat. The Dollar Index trades at 101.05, up 0.03 percent from 101.02. The EUR/USD pair slipped 0.07 percent to 1.1420 while GBP/USD fell 0.14 percent to 1.3234. USD/CHF rose 0.04 percent to 0.8090. EUR/GBP gained 0.09 percent to 0.8630. EUR/JPY eased 0.01 percent to 184.63 and GBP/JPY dropped 0.05 percent to 213.95.

Both crude benchmarks retreated on rising traffic through the Strait of Hormuz. Brent Crude Futures for September settlement fell 0.76 percent to 76.93 dollars. WTI Crude Futures for August settlement slipped 0.70 percent to 73.34 dollars.

Despite lower oil prices, rate-hike concerns weighed on gold. August gold futures plunged 1.54 percent to 4,137.80 dollars from the prior close of 4,202.70 dollars.

Key data due include June PMI readings from France, Germany, the Euro Area, and the United Kingdom. Also scheduled are French business confidence figures, Swiss first-quarter current account data, and U.K. CBI Industrial Trends Orders for June.

Major earnings updates expected Tuesday feature ICON, Telecom Plus, Vente Unique.com, and Dialight.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.