European Stocks Set for Weaker Open

European stocks were mixed on Friday, with the STOXX 50 rising 0.4% while the STOXX 600 hovered around the flatline, as a six-session rally apparently eased. Investors remained focused on geopolitical developments after US-Iran talks scheduled for today in Geneva were called off. The news raised questions about prospects for a peace agreement and the reopening of the Strait of Hormuz, helping push oil prices modestly higher. Energy and defense stocks outperformed while miners and utilities lagged. Novartis and AstraZeneca rose 1.1% and 1.5%, respectively. Luxury group LVMH advanced 1.6%, while oil majors TotalEnergies and BP gained 1.0% and 1.4%. On the downside, shares of ASML Holding fell 1.7% after Bloomberg reported that US officials are concerned one of the company's chipmaking machines may have been transferred to China, potentially violating US-led export restrictions. For the week, the STOXX 50 has gained 2.1%, while the STOXX 600 is up 0.6%.

European equity markets were on track to open lower on Friday as investors adopted a more cautious stance following a pivotal week that featured a landmark US-Iran peace agreement and a series of major central bank policy decisions. Technology shares could also face pressure after Accenture lowered its annual revenue growth forecast, citing a challenging demand environment. In Europe, investors will focus on Germany’s producer price index data as well as UK retail sales and consumer confidence figures for further clues on the region’s economic outlook. With no major corporate earnings releases scheduled, attention is expected to remain on macroeconomic developments and monetary policy signals. In premarket trading, Euro Stoxx 50 futures fell 0.4%, while Stoxx 600 futures were down 0.2%, pointing to a softer start for European markets.

European stock indices closed mixed on Thursday as support from lower inflationary risks weighed against sector-specific losses. The Euro STOXX 50 gained 0.5% to a new record of 6,331 and the STOXX Europe dropped 0.4% to 637 amid pressure from heavyweight pharmaceutical, miners, and energy producers. US President Trump signed the memorandum of understanding with Iran that suspends the war for 60 days and restores the flows of fuel tankers through the Strait of Hormuz, lowering energy prices and reducing concerns that the ECB would deliver more rate hikes this year. Banks were mostly higher after leading gains this week, with UniCredit and Intesa Sanpaolo adding 0.7%. Meanwhile, industrials rose sharply with Airbus, Safran, and Schneider adding close to 3%. Meanwhile, Infineon jumped 7% to track the recent rally for chip producers worldwide. On the other hand, SAP dropped 4.7% on software weakness, while German auto manufacturers and British pharmaceuticals and miners retreated.