European Stocks Set for Muted Open

European stocks were slightly higher on Tuesday, with the STOXX 50 rising 0.2% and the STOXX 600 gaining 0.1% to reach fresh record levels. Investors remained focused on strong corporate earnings, while another rise in oil prices amid mounting uncertainty over a US-Iran deal weighed slightly on sentiment. Technology stocks, meanwhile, remained well supported following news that Intel raised $20 billion through an upsized share sale, while Nvidia announced plans to secure $500 billion in financing for AI infrastructure. Among major technology stocks, ASML Holding rose 0.9%, SAP gained 0.8%, Infineon Technologies added 0.1%, and Schneider Electric advanced 0.2%. The energy sector also traded higher, benefiting from elevated oil prices. TotalEnergies climbed 1.3%, Shell rose 1%, BP gained 1.5%, and Eni advanced 2%.

European equity markets were headed for a slightly weaker open on Tuesday as oil prices extended their gains on fading hopes for a near-term deal between the US and Iran, keeping inflation risks and the interest rate outlook in focus. After Tehran demanded financial compensation for damages suffered during the conflict, Trump said he had instructed US representatives to firmly press for compensation from Iran as part of any future negotiations, adding another hurdle to diplomatic efforts. In Europe, investors will focus on Italy’s trade data, while earnings are due from Intercontinental Hotels, Lion Finance Group and Turkiye Petrol Rafinerileri, among others. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures were both down around 0.1%.

European stocks closed slightly higher at new records on Monday with broad support from most major sectors. The Euro STOXX 50 added 0.3% to 6,540 and the STOXX Europe 600 inched higher to 661, both at record highs. Markets looked past a rebound in sovereign yields as uncertainty on the restart of energy exports from the Middle East maintained inflationary risks. TotalEnergies and ENI rose 2% and 1.5%, respectively, amid the slight rebound for fuel and natural gas prices. Tech stocks also rose, tracking the support from US counterparts on positive signals for cloud services. SAP, ASML, and Infineon rose around 1%. Also, the heavyweight financial sector also closed slightly higher, with Allianz and Deutsche Bank adding more than 1%.