European Stocks Set for Lower Open

European equity markets were set to open marginally lower on Friday, as investors adopted a cautious stance ahead of the weekend while awaiting clearer signals on US-Iran peace negotiations. US President Donald Trump expressed confidence that the conflict with Iran will end soon, saying Tehran had agreed to terms including abandoning nuclear ambitions and reopening the Strait of Hormuz. Trump also announced a 10-day ceasefire between Israel and Lebanon, a development that could support further US-Iran talks. In Europe, investors will focus on upcoming trade balance data for the Eurozone and Italy, with no major corporate earnings releases scheduled. In premarket trading, Euro Stoxx 50 and Stoxx Europe 600 futures were both down about 0.1%.

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%.