LONDON — Europe stock markets looked set to fall slightly on Monday, as traders digested rising tensions in the Middle East followingThe German Dax and Italy's FTSE Mib were both called around 0.2% lower, according to IG Index data, while Spain's Ibex is expected to open down around 0.13%. France's Cac 40 looked set to open flat.. Over the weekend, over 100 Israel's Air Force fighter jets hit Lebanese targets and Iran-backed Hezbollah fired more than 320 rockets into Israel.
Later in the week, euro zone inflation data is due to be released Friday and will be closely watched for hints as to whether to European Central Bank will cut rates further next month.
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