European Stocks Poised for Higher Open

European stocks traded higher on Thursday, with the STOXX 50 adding 0.4% and the STOXX 600 increasing 0.3%, extending gains for a fourth consecutive session and climbing to fresh record highs. Investors remained focused on the latest corporate earnings and guidance while continuing to monitor developments in the Middle East, amid growing optimism that the US and Iran could be nearing a deal. Merck gained 1.5% after raising its 2026 earnings guidance. Rheinmetall advanced 0.8%, with investors looking past the company's lower 2026 outlook, which reflected the impact of a German government order cancellation earlier this year. WPP soared more than 27% to top the STOXX 600 after the company said there were signs of improvement in its core creative and media businesses. Meanwhile, Siemens dropped more than 5% as its quarterly results disappointed investors despite the company reporting record industrial profit and a record level of new orders.

European equity markets were on track to open modestly higher on Thursday, with major regional indexes remaining near record levels despite continued volatility across global technology stocks. Sentiment was also supported by reports of a partial reopening of the Strait of Hormuz, which drove oil prices lower, easing inflation concerns and reducing expectations for additional interest rate hikes. Investors will also monitor a fresh batch of economic data, including Eurozone retail sales, German factory orders, and French employment figures. On the corporate side, earnings are due from major companies such as Siemens, Deutsche Telekom, Rheinmetall, Assicurazioni Generali, and Merck. In premarket trading, futures tied to the Euro Stoxx 50 and Stoxx 600 were both higher by around 0.2%.

European stocks closed mixed on Wednesday, holding close to all-time highs from earlier in the week following a batch of corporate results. The Euro STOXX 50 inched marginally down to 6,448 and the STOXX Europe 50 added 0.1% to 657. Siemens Energy closed near the flatline even though it beats earnings estimates, with orders reaching record highs on the back of its business to power data centers. Meanwhile, SAP added over 1% to track the positive signals from US software counterparts, while Bayer and Argenx each gained more than 2% for a strong session in pharmaceuticals. Conversely, Infineon sank 5.7% as its guidance disappointed a portion of investors. Also, DHL dropped 3.7% after posting its results. Outside the Eurozone, Novo Nordisk closed flat despite issuing upbeat guidance, as concerns over the outlook for its obesity business continued to weigh on the stock. Also, Glencore surged 3.8% after delivering a strong guidance and plans to pursue a secondary listing on the ASX.