European Stocks Set for Muted Open

European stocks were slightly higher on Friday, with both the STOXX 50 and the STOXX 600 edging up 0.1%. Investors continued to assess developments in the Middle East, while easing oil prices following their sharp rally earlier in the week provided some relief after reports suggested the US and Iran would continue peace negotiations. Traders were also watching the highly anticipated US market debut of South Korean chipmaker SK Hynix. The technology sector was under pressure, however, with ASML Holding falling 1.9% and Infineon Technologies losing 2.3%. Vodafone surged more than 10% to top the STOXX 600 after UAE-based e& announced it would sell its stake in the telecom company for $5.95 billion. BBVA (+1%), Intesa Sanpaolo (+1%), and Rio Tinto (+1.7%) also posted gains. In contrast, AstraZeneca fell 1.4%, extending its 6.2% decline from the previous session. For the week, the STOXX 50 is down around 2%, while the STOXX 600 has lost approximately 1.8%.

European equity markets were poised for a subdued open on Friday as investors continued to assess developments in the Middle East and their implications for inflation and monetary policy. Reports indicated that the US and Iran will continue peace negotiations despite a recent escalation in hostilities that disrupted energy flows through the Strait of Hormuz and reignited inflation concerns. On Thursday, European stocks ended higher amid a rebound in technology shares. Investors will now focus on final June inflation data from Germany and France, along with May industrial production figures for Italy and Turkey. In premarket trading, Euro Stoxx 50 futures slipped 0.2%, while Stoxx 600 futures were little changed.

European stocks closed firmly higher on Thursday, rebounding from the losses in the previous session as concerns of tighter monetary conditions eased. The Euro STOXX 50 added 1.2% to close at 6,282 and the STOXX Europe 600 advanced 0.8% to 640. Stocks in the AI sector rebounded ahead of the start of trading for SK Hynix in the United States tomorrow, with reports that the ADR is seven times oversubscribed, challenging recent calls that data center companies are overinvested. ASML and Infineon jumped over 4% each, while Siemens Energy and Siemens advanced over 3%. In the meantime, banks tracked a recovery for Eurozone bonds amid a pullback in energy prices, as tanker flows through the Strait of Hormuz persisted despite the strikes between the US and Iran. Santander, Intesa Sanpaolo, and ING added around 2%. In turn, UniCredit gained 2.6% amid the increasing likelihood that it will acquire Commerzbank.