European Stocks Poised for Lower Open to Begin 2026

European stocks inched higher to new records on Tuesday as gains for technology and energy stocks offset a muted session elsewhere. The Euro STOXX 50 closed 0.5% higher at a record of 6,553 and the STOXX Europe 600 inched higher to a record of 660.8. ASML jumped 2.7%, supported by a recommendation upgrade by Bernstein. Other companies with exposure to AI infrastructure also rose, with Siemens Energy gaining close to 3%. In turn, energy stocks rose after US President Trump hardened his rhetoric against Iran, prolonging expectations of suspended exports through the Persian Gulf despite optimistic signals of a deal from Pakistan and Qatar. TotalEnergies and ENI advanced nearly 2%.

European stocks pared their early gains on Tuesday, with both the STOXX 50 and STOXX 600 hovering around the flatline near record levels. Strong corporate earnings have been supporting investor confidence, while another rise in oil prices amid mounting uncertainty over a U.S.-Iran deal has tempered the positive mood. Technology stocks, meanwhile, remained well supported following news that Intel raised $20 billion through an upsized share sale, while Nvidia announced plans to secure $500 billion in financing for AI infrastructure. Among major technology stocks, ASML Holding rose 0.9%, SAP gained 0.8%, Infineon Technologies added 0.1%, and Schneider Electric advanced 0.2%. The energy sector also traded higher, benefiting from elevated oil prices. TotalEnergies climbed 1.3%, Shell rose 1%, BP gained 1.5%, and Eni advanced 2%. Travel and leisure stocks, meanwhile, traded lower amid concerns over rising fuel costs, with Airbus shares down 1.3%.

European equity markets were headed for a slightly weaker open on Tuesday as oil prices extended their gains on fading hopes for a near-term deal between the US and Iran, keeping inflation risks and the interest rate outlook in focus. After Tehran demanded financial compensation for damages suffered during the conflict, Trump said he had instructed US representatives to firmly press for compensation from Iran as part of any future negotiations, adding another hurdle to diplomatic efforts. In Europe, investors will focus on Italy’s trade data, while earnings are due from Intercontinental Hotels, Lion Finance Group and Turkiye Petrol Rafinerileri, among others. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures were both down around 0.1%.