European Stocks Set for Strong Open

EU50 increased to 6154.00 Index Points, the highest since February 2026. Over the past 4 weeks, Euro Area Stock Market Index (EU50) gained 4.97%, and in the last 12 months, it increased 16.29%.

The Stoxx 50 and Stoxx 600 gained more than 1% on Friday, supported by falling oil prices after President Trump halted plans for further strikes on Iran. Travel, construction and auto stocks led gains, while energy shares slightly underperformed. Among major European companies, ASML Holding rose 0.8%, LVMH climbed 3.3%, and Siemens gained more than 2%. Trump said a peace agreement with Iran could be reached as soon as this weekend in Europe, adding that the Strait of Hormuz would reopen once a deal is finalized and that Tehran would commit to avoiding nuclear weapons development. In economic news, UK data showed the economy contracted 0.1% in April after two months of growth, with the Middle East conflict beginning to weigh on activity. Meanwhile, the European Central Bank raised interest rates for the first time in nearly three years and indicated that a restrictive monetary stance could remain through 2027.

European equity markets were poised for a sharp advance on Friday after President Donald Trump scrapped plans for further strikes on Iran and said a peace agreement could be signed as soon as this weekend in Europe. Trump also said the Strait of Hormuz would reopen once the deal is finalized and that Iran would commit to not pursuing a nuclear weapon. In Europe, data showed the UK's economy contracted 0.1% in April after expanding over the previous two months, as the effects of the Middle East conflict began to weigh on activity. Meanwhile, the European Central Bank raised interest rates on Thursday for the first time in nearly three years and signaled that restrictive policy is likely to remain in place through 2027. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures were up 1.5% and 1.3%, respectively.