European Stocks Set for Lower Open

European stocks closed higher on Friday, tracking similar developments in major equity markets amid a rebound for industrial and tech stocks. The Euro STOXX 50 added 0.4% to 6,530 and the STOXX Europe 600 rose 0.4% to 661. Software producers and AI-related infrastructure manufacturers rose for a second session, tracking US counterparts with SAP gaining 4.1%, while Infineon and Siemens rose nearly 3% each. Meanwhile, Sanofi and Argenx each gained 1.3% to close a strong weak for the European pharmaceutical sector. On the other hand, Allianz fell 1.6% despite generating a record profit on both its insurance and asset management business in the second quarter. Likewise, Munich Re dropped 1.5% despite reporting higher profits in the period.

Stocks in Europe traded higher on Friday, with both the STOXX 50 and STOXX 600 gaining 0.2% to reach fresh record levels once again. Earnings remained in focus while traders continued to assess developments in the Middle East. On the data front, Germany’s industrial production and exports came in better than expected. Kingspan jumped more than 12% to lead the STOXX 600 after the company raised its full-year profit guidance, while Genmab gained more than 6% after reporting higher first-half revenue. SAP shares rose almost 3%, while Rheinmetall added 2%. Novartis gained 1%, AstraZeneca rose 1.6% and Airbus advanced 0.8%. On the other hand, Munich Re was down 2.7% as its resuts failed to impress investors despite reporting a 6$ rise in net profit for Q2. For the week, the STOXX 50 gained 2.4%, while the STOXX 600 is up 1.4%.

European equity markets were set to open lower on Friday as persistent concerns over massive artificial intelligence spending and uncertainty surrounding the reopening of the Strait of Hormuz weighed on global sentiment. Oil prices rose for a second straight session following renewed hostilities in the waterway, while the proposed Iran-Oman agreement governing Hormuz appeared more restrictive than markets had anticipated. In Europe, investors will assess trade data from Germany and France, France’s unemployment rate, and UK house price figures. On the corporate front, earnings are due from Allianz, Munich RE, Diageo, Daimler Truck and Aurubis, among others. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures were both down around 0.1%.