European Stocks Set for Higher Open

European stocks started August on a positive note, with the STOXX 50 rising 0.9% and the STOXX 600 gaining 0.3%, as investors prepared for a fresh round of corporate earnings and welcomed lower oil prices after US President Donald Trump said new US-Iran talks would begin on Monday. Airlines led the gains, with Lufthansa (+3.8%) and Ryanair (+3.3%) among the top performers. Airbus (+3.2%), SAP (+3.7%), and Safran (+3.2%) also advanced, while Worldline surged nearly 7% to top the STOXX 600, extending Friday's strong rally. On the downside, AstraZeneca tumbled more than 6% following reports that it was in merger talks with Bristol Myers Squibb on a potential $400 billion deal. Energy stocks also came under pressure as oil prices declined, with Eni (-2.2%), TotalEnergies (-1.8%), and Shell (-1.1%) all trading lower.

European equity markets were on track to open higher on Monday after President Donald Trump said peace talks with Iran will resume today following his decision to cancel a planned attack on the Islamic Republic, sending oil prices lower and easing concerns over inflation and the interest rate outlook. In Europe, investors will monitor German retail sales and Turkish inflation figures, along with final manufacturing PMI readings from across the region. On the corporate front, earnings reports are due from Covestro, Acciona Energia, Morgan Advanced Materials, Autolus Therapeutics, and Salvatore Ferragamo, among others. In premarket trading, Euro Stoxx 50 futures gained 0.8%, while Stoxx 600 futures advanced 0.5%. Both benchmark indexes are now within striking distance of fresh record highs.

European stocks erased early gains to close mixed on Friday, tracking the swings in North American markets amid as an uncertain rate outlook offset mostly positive earnings events. The Euro STOXX 50 rose 0.2% to 6,360, easing from a record high earlier in the session, and the STOXX Europe 600 fell 0.1% to 649. The inflation rate in the Eurozone was broadly in line with expectations to maintain bets that the ECB will deliver another rate hike this year. Saint Gobain surged 9% after posting an acceleration in second-quarter sales growth, and banks were supported by Credit Agricole posting stronger profits. Meanwhile, Enel lost 0.5% after releasing its results. BP, Novo Nordisk, Siemens Energy, Deutsche Telekom, and Allianz are due to publish results next week.