European Stocks Little Changed on Thursday

The Stoxx 50 and Stoxx 600 ended Thursday’s session largely unchanged as investors stayed cautious, closely monitoring developments in peace negotiations between the US and Iran. Sentiment was also influenced late in the European session after President Donald Trump confirmed discussions with Lebanese President Joseph Aoun and Israeli Prime Minister Benjamin Netanyahu, announcing that Israel and Lebanon had agreed to a 10 day ceasefire set to begin at 5 p.m. ET. On the equity side, Novo Nordisk and SAP rose more than 3%, while Hermès and Siemens added around 1.3% and Shell gained about 1%. In contrast, L’Oréal fell over 2%, and several heavyweight names including ASML, HSBC, Roche, and Novartis edged slightly lower, keeping overall indices broadly flat.

European stocks edged higher on Thursday, with the STOXX 50 rising 0.4% and the STOXX 600 gaining 0.2%, as investors continued to monitor developments in the Middle East, where reports suggest the US and Iran are considering a two-week extension of the ceasefire to allow more time for peace negotiations. The current truce is set to expire next week. However, shipping through the Strait of Hormuz remains suspended, with the US naval blockade still in place. Attention also turned to corporate earnings. ASML shares climbed more than 2%, supported by strong results from key customer TSMC. SAP (+0.8%) and Prosus (+2%) also posted gains, while Tesco surged over 3% after reporting robust underlying performance. On the downside, TotalEnergies slipped 0.5% despite indicating a solid Q1 and Pernod Ricard declined 1.4% after warning that disruptions linked to the Middle East war could lead to an annual sales drop of up to 4%.

European equity markets were poised for a firmer open on Thursday, tracking gains across global markets as optimism over renewed US-Iran negotiations and the prospect of a broader peace deal boosted sentiment. Reports indicated Washington and Tehran are considering extending their two-week ceasefire to allow more time for discussions, even as the Strait of Hormuz remains effectively closed under a dual blockade. Strong corporate earnings and a rebound in technology shares also supported the upbeat tone in global equities. In Europe, investors will focus on the UK’s monthly GDP data for February, alongside final March inflation readings for the Eurozone and Italy. On the corporate side, earnings releases are expected from Tesco, Pernod Ricard, and Viscofan, among others. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures were both higher by around 0.2%.