Australian shares are set to open lower on Tuesday, tracking weakness across European markets overnight, while United States markets remained closed for a public holiday.
S&P/ASX 200 futures were down 6 points, or 0.1%, at 8,991.
European markets finished mostly lower on Monday as rising oil prices following renewed U.S.-Iran tensions stoked inflation concerns.
The UK’s FTSE 100 eased 0.1%, Germany’s DAX fell 0.2%, and France’s CAC 40 gained 0.3%.
Over the weekend, Germany’s far-right AfD topped a state election in Saxony-Anhalt with 44% of the vote, dealing a major blow to Chancellor Friedrich Merz.
"This development is dangerous for the longer-term stability of the single currency," XTB research director Kathleen Brooks was quoted as saying in a Reuters story.
"The next few years could see waves of political change in Europe and a shift to the right in the two largest economies. This may not be a problem for FX traders today, but it is a problem for tomorrow, and it could explain why the euro is one of the weakest currencies compared to its peers so far in 2026," Brooks said.
The Australian sharemarket finished marginally higher on Monday as energy stocks rose, offsetting weakness across the technology sector.
The S&P/ASX 200 added 5 points, or 0.1%, to 9,010.9, with just four of the 11 sectors finishing higher.
In Tuesday’s session, market participants will be monitoring the Westpac consumer confidence index and NAB business confidence survey for further clues on the health of the Australian economy.
On the bond markets, local 10-year yields rose 0.5% to 5.219%, their highest level since June 2011, while two-year yields fell 0.4% to 4.831%.
