European Stocks Set for Lower Open

European stocks traded higher on Thursday, with the STOXX 50 rising 0.5% and the STOXX 600 gaining 0.4%, supported by a slight decline in oil prices and improved hopes for a broader agreement with Iran. Sentiment was lifted after the US said Israel and Lebanon had agreed to a ceasefire, contingent on Hezbollah also ceasing hostilities. LVMH (+2.0%), L’Oréal (+1.5%), Hermès (+1.9%) and SAP (+3.6%) all moved higher. B&M European Value (6.5%) extended gains for a second session to top the STOXX 600 while Puma (5.9%) and Capgemini (5.4%) were also among the top performers. Meanwhile, global technology and AI-related stocks came under pressure following a weaker outlook from Broadcom. ASML slipped 0.2%, while Infineon declined 2.8% and STMicroelectronics slumped 3.5%. Vivendi sank more than 5%, as Europe's second-highest court on Wednesday ?ruled against the company in ?its fight against EU charges for closing ?its 2023 acquisition ?of publisher Lagardere before regulatory approval.

European equity markets were on track for a weaker open on Thursday as escalating geopolitical tensions and a broad technology selloff dampened investor sentiment. Renewed exchanges of strikes between the US and Iran reduced hopes for a near-term peace agreement, keeping concerns about elevated energy prices and rising inflation firmly in focus. Meanwhile, a disappointing outlook from US chipmaker Broadcom weighed on global technology and artificial intelligence stocks. In Europe, investors will monitor Eurozone retail sales figures, Turkish trade data, and construction PMI reports from across the region for fresh economic signals. Corporate earnings are expected to remain quiet, with no major releases scheduled on Thursday. In premarket trading, Euro Stoxx 50 futures fell 0.3%, while Stoxx 600 futures were down 0.4%.

European stock indices closed firmly lower on Wednesday amid persistent concerns of pro-inflationary pressures and fresh threats of tarrifs from the US. The Euro STOXX 50 fell 0.7% to 6,065 and the STOXX Europe 600 fell 0.5% to 622. The US Presidential administration threatened additional tariffs of up to 12.5% on multiple trading partners due to their failure to ban goods made from forced labor, reigniting trade barreirs with the EU. Meanwhile, fresh strikes between Iran and GCC countries further deteriorated the ongoing ceasefire, lifting oil prices and Eurozone yields. Banks closed sharply lower with UniCredit, BBVA, and Deutsche Bank, dropping between 3.7% and 2%. Luxury brands were also under pressure with LVMH slipping 3%. In turn, ASML added 1.6% to track the positive momentum for the chip sector. Lastly, Inditex added 1.5% after posting robust earnings results.