European Stocks Set for Positive Open

European shares edged higher on Wednesday, with both the STOXX 50 and broader STOXX 600 gaining around 0.1%, as falling oil prices pushed bond yields lower on hopes that the Strait of Hormuz could soon reopen. Iran said it had resumed talks with Oman on managing the Strait of Hormuz, amid mounting pressure from US President Donald Trump during the nearly six-month conflict that has disrupted oil markets and fueled concerns over global inflation. Basic Resources led sectoral gains, rising around 1%, while the Energy index fell 1.1% as Brent crude declined for a third consecutive session. Technology shares slipped slightly as investors awaited Nvidia’s Q2 results, which are expected to provide further insight into the pace of AI-related spending. Attention is also turning to a key US inflation report due later today, which could offer further clues on the Federal Reserve’s interest-rate path.

European equity markets were set to open slightly higher on Wednesday after global bond yields declined sharply as traders continued to assess the implications of the US government’s expanded debt buybacks. Falling oil prices also supported sentiment amid hopes of renewed diplomatic efforts in the Middle East, while easing concerns over higher inflation in the near term. Meanwhile, investors braced for a key US inflation reading and Nvidia’s earnings report, which could provide fresh catalysts for global markets. In Europe, no major economic data or corporate earnings releases are scheduled for Wednesday. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures were both up around 0.1%.

European stocks closed slightly higher on Tuesday, trimming losses from recent sessions with rebounds from AI infrastructure companies and manufacturers. The Euro STOXX 50 added 0.2% to 6,462 and the STOXX Europe 600 added 0.4% to 657. Chip producers and data center input companies pared losses from the previous session as the market gauged the outlook for capital expenditure in coming years, especially ahead of IPOs by Anthropic and OpenAI. ASML and Infineon rose 1% each, while Siemens Energy soared over 3%. Meanwhile, Siemens, Schneider, Safran, and Airbus also gained, benefitting from lower energy prices and sovereign yields. Natural gas futures fell from peaks after the US signaled it would put sanctions on companies helping Iran trade, moving away from a rhetoric of military strikes.