European Stocks Poised for Higher Open

European stocks extended gains for a third consecutive session on Thursday, with the STOXX 50 rising 0.4% and the STOXX 600 adding 0.2%, as traders monitored developments in the US-Iran conflict, particularly whether Iran would accept the US proposal. US President Trump said no deal had been finalized, adding that it was “perhaps a big assumption” to expect Iran to accept the proposal. He also warned that military strikes could resume if Tehran failed to comply. Investors were also focused on the earnings season. Shares of Shell fell 3% after the company reported a sharp increase in earnings but warned of lower production due to disruptions linked to the Middle East conflict. Maersk also declined 3%, despite posting stronger-than-expected profits while maintaining its outlook unchanged. Meanwhile, gains in major heavyweight stocks helped support the broader market, with ASML Holding rising 1%, Roche adding 0.3%, and LVMH advancing 1.8%.

European equity markets were set to open higher on Thursday, marking a third consecutive session of gains as rising optimism over a potential US-Iran peace agreement pushed oil prices sharply lower and eased inflation concerns. Investors also focused on another wave of corporate earnings reports. UK energy major Shell exceeded quarterly profit expectations as the Middle East conflict contributed to higher energy prices during the period. Swiss Re also posted stronger-than-expected first-quarter net income, supported by lower natural catastrophe claims and improved investment returns. Meanwhile, Siemens Healthineers missed second-quarter revenue estimates, while Engie reported a decline in first-quarter earnings. In premarket trading, Euro Stoxx 50 futures rose 0.1%, while Stoxx 600 futures gained 0.2%.

European stocks surged on Wednesday as a prospective of an agreement in the Middle East lowered energy prices. The Eurozone's STOXX 50 gained 2.6% to 6,025 and the pan-European STOXX 600 rose 2.3% to 623. Iran was reportedly considering a memorandum sent by the US that if agreed to, would end the ongoing war and restore trade flows through the Strait of Hormuz. The developments drove oil and natural gas prices to decline sharply in the session, driving rate traders to trim the magnitude of rate hikes expected by the ECB this year and improving the outlook on margins for corporations. Industrial heavyweights led the gains on lower power prices, with Airbus, Schneider, Siemens, and Safran surging between 3.5% and 9%. Also, ASML jumped 6.2% on strong results from AMD. The pullback in sovereign yields also supported credit sensitive banks and luxury companies. Novo Nordisk added 3% on its guidance of strong sales for weight-loss pills, and AXA jumped 4% after earnings.