European Stocks Head for Higher Open

European equity markets were set for a higher open on Friday after President Donald Trump postponed a planned strike on Iranian energy infrastructure to April 6 to allow for negotiations, saying talks with Tehran were going “very well.” Trump also said Iran had allowed 10 oil tankers to pass through the Strait of Hormuz this week as a gesture of goodwill, while Treasury Secretary Scott Bessent noted that an insurance program aimed at boosting shipping through the waterway would begin soon. However, reports indicate the Pentagon is considering sending up to 10,000 additional ground troops to the Middle East. Closer to home, investors will assess UK retail sales, Spanish inflation, and French jobs data. In premarket trade, Euro Stoxx 50 and Stoxx 600 futures were up 0.5% and 0.4%, respectively.

European stocks closed sharply lower on Thursday as a fresh surge in key energy prices raised concerns of higher rates by the ECB and stagflation in among European economies. The Eurozone's STOXX 50 sank 1.5% to close at 5,566 and the pan-European STOXX 600 dropped 1.1% to 581. US President Trump went back on the conciliatory rhetoric of talks with Iranian authorities, matching the hawkish tone from Tehran to erase hopes that a ceasefire could be agreed. Oil and gas prices surged to lift sovereign debt yields, pressuring heavyweight banks. Santander, BNP Paribas, and BBVA sank between 2% and 3%. The power-hungry industrial sector also pulled back with Siemens Energy and Schneider losing 4% and 5%, respectively. Meanwhile, ASML retreated 4% to track the negative momentum for chip companies in the US following Alphabet's research piece of more compute-efficient AI models. Lastly, H&M lost 2% on weaker first-quarter sales.

European stocks moved lower on Thursday, snapping a three-session winning streak, as uncertainty surrounding Middle East peace talks weighed on sentiment. The STOXX 50 declined 0.8%, while the STOXX 600 fell 0.7%. Conflicting signals from Washington and Tehran added to market unease. The US indicated that discussions over a proposed peace plan are underway, whereas Iran denied any direct engagement with Washington. Meanwhile, rising oil prices continued to fuel inflation concerns, adding further pressure on equities. Technology and industrial stocks led the declines, with ASML Holding dropping 2.4% and Siemens Energy losing 2.9%. Thyssenkrupp fell 3.5%, while Rheinmetall slipped 2.4%. Also, H&M plunged nearly 6% after reporting weaker first-quarter sales. On the upside, NEXT surged almost 7%, leading the STOXX 600, following strong profit and sales growth.