Europe open: Stocks start lower, all eyes on ECB and Iran

Stock markets have started the session lower with investors opting to stay on the sidelines as they listen in on a European Central Bank policy conference for possible hints on monetary policy going forward and ahead of the US central bank's policy decision the next day.

"With all the focus on the Federal Reserve it’s easy to forget that the European Central Bank is facing an even bigger problem. With ECB President Mario Draghi leaving at the end of October, and the economy in Europe floundering, today’s speech in Sintra, Portugal at the ECB central bank forum, could offer further clues as to how much further the ECB can look at monetary easing, over and above the September TLTRO program," said CMC Markets UK's Michael Hewson.

On that note, speaking at the annual ECB Forum in Sintra, Portugal, ECB chief Mario Drahi said that further interest rate cuts remain a part of the ECB tool kit, that the monetary authority remained committed to its price-stability objective and that considerable room remained to expand quantitative easing in the euro area.

As of 0841 BST, the benchmark Stoxx 600 wasdown by 0.31% to 377.30, alongside a drop of 0.71% to 12,000.41 for the German Dax while the FTSE Mibtel was moving lower by 0.45% to 20,532.51.

Sentiment in equity markets was very bearish.

According to Bank of America-Merrill Lynch, its June fund manager survey revealed the most 'bearish' sentiment since the global financial crisis with "pessimism driven by concerns over trade war/recession, monetary policy impotence, and low strike prices for policy puts."

Also dampening the mood was news that Washington would deploy a further 1,000 troops to the Middle East.

In economic news, according to the European Automobile Manufacturers' Association, car sales in the European Union edged higher by just 0.04% against their year ago level in May to reach 1.44m vehicles.

For later in the session, Eurostat was set to publish its final reading on euro area consumer prices for May at 1000 BST, alongside foreign trade data for the single currency bloc in May.

Also due out at 1000 BST was the ZEW institute's economic confidence index for Germany in June.

And later in the day, the US Commerce Department was set to publish housing starts figures for May at 1330 BST.

German chip maker Siltronic was among the worst performers after warning of the impact that US restructions on Chinese exports would have.

Infineon was also lower, after going cap in hand to investors for €1.5bn to help fund its acquistion of US rival Cypress Semiconductor.

Swedbank was lower after announing that it had fired two executives at its Estonian unit.