European equity markets were set for a stronger open on Monday, as rising optimism over a potential US–Iran agreement to reopen the Strait of Hormuz lifted investor sentiment. Oil prices dropped sharply on the news, easing concerns about inflation and the risk of further interest rate hikes, while reinforcing expectations that equities could resume their climb toward new record highs.
With no major economic data releases or corporate earnings reports scheduled in Europe on Monday, investors are expected to focus on inflation figures from across the region later in the week for additional insight into the monetary policy outlook. In premarket trading, futures on both the Euro Stoxx 50 and the Stoxx 600 were up by around 1%.
