European Stocks Poised for Higher Open

European equities closed firmly higher on Friday with support from the strong momentum for North American equities and a pullback in bond yields, improving the macroeconomic backdrop for the corporate sector. The Eurozone's STOXX 50 gained 3% to 6,025 and the pan-European STOXX 60 advanced 1.9% to 626, both testing their highest level since before the start of the war in Iran at the last session of February. AI infrastructure companies rallied as markets continued to gauge how much room there is for the sector to extend its strong momentum. Nokia surged 10.6% after announcing projects with AMD, Lenovo, and Supermicro. In turn, ASML jumped nearly 5%. Banks and industrial companies were also sharply higher, with Schneider, Airbus, Santander, and UniCredit adding over 2% each.

European stocks moved higher on Friday, with the STOXX 50 gaining 0.7% and the STOXX 600 advancing 0.6%, supported by strong momentum in the tech sector as investors continued rotating into AI-related companies following a positive lead from Asian markets. ASML Holding rose more than 2.5%, while Infineon climbed 4.3% and STMicroelectronics surged 3.9%. Luxury stocks also traded firmly higher after strong earnings from Richemont, whose full-year sales exceeded expectations, sending its shares up 2.3%. LVMH gained 1.4%, Hermes added 0.7%, and L’Oréal rose 0.4%. Despite the upbeat session, investors remained cautious as the conflict involving Iran continued to weigh on sentiment and add uncertainty to global markets. For the week so far, both the STOXX 50 and the STOXX 600 have gained around 2.3%, supported by growing optimism that the US and Iran could eventually reach an agreement to de-escalate tensions, potentially leading to the reopening of the Strait of Hormuz.

European equity markets were set for a stronger open on Friday as investors prepared for a fresh batch of regional economic data while continuing to monitor ongoing negotiations between the US and Iran. Key releases scheduled for the day include Germany’s consumer confidence and business climate indicators, UK retail sales data, and French business confidence figures. No major corporate earnings reports are expected. Meanwhile, Iran said the latest US proposal had partially narrowed differences between the two sides, though remarks from Iran’s Supreme Leader regarding the country’s uranium stockpile, along with disagreements over tolls in the Strait of Hormuz, continued to cloud hopes for a breakthrough agreement. In corporate developments, Estée Lauder and Puig announced on Thursday that they had ended merger discussions. In premarket trading, Euro Stoxx 50 futures rose 0.8%, while Stoxx 600 futures gained 0.7%.