The situation in the Middle East increases risks for investors

Markets are gripped by nervousness as Israel prepares to send troops into the Gaza Strip and fears grow that the conflict with Hamas will spill over borders. Iran, in particular, has warned of regional escalation if attacks on Palestinians continue.

Sentiment in Asia was fragile, with Japan's Nikkei falling as much as 2% and other stock indexes also in the red, hinting at further declines in Europe following Friday's 1% selloff in the pan-European STOXX 600.

On Monday, Brent crude remained above $90 a barrel, although it fell from a one-and-a-half-week high early in the session.

US Secretary of State Antony Blinken was in the Middle East and President Joe Biden was on the phone to help ease tensions.

However, currencies were mostly calm except for the Israeli shekel, which fell to its lowest level in more than eight years.

ECB speakers are speaking this week, including Bank of Spain Governor Pablo Hernandez de Cos on Monday.

The eurozone will also publish trade data.

It will be a busy week for Bank of England rhetoric too, starting with the central bank's chief economist Hugh Pill on Monday. There will be plenty of important UK data, with house prices today, employment and wages data on Tuesday, and the CPI on Wednesday.

The British Monetary Authority will announce its rate decision on November 2, the day after the US Federal Reserve.

Fed Chairman Jerome Powell's speech at the Economic Club of New York this Thursday is the most anticipated central bank speech this week.

The US will also release retail sales data on Tuesday, as well as earnings growth for banks, including Goldman Sachs on the same day and Morgan Stanley on Wednesday.

Tesla and Netflix will also report on Wednesday.

Key events that could impact markets on Monday:

-Eurozone trade balance (August)

-House prices in the UK (October)