FX.co ★ European Stocks Set for Strong Open

European equity markets were set for a strong rally on Friday after President Donald Trump called off plans for additional strikes on Iran and indicated that a peace agreement could be signed in Europe as early as this weekend. Trump also stated that the Strait of Hormuz would reopen once the deal is finalized and that Iran would pledge not to pursue a nuclear weapon. In Europe, data showed that the UK economy contracted by 0.1% in April, following growth in the previous two months, as the fallout from the Middle East conflict began to weigh on activity. Meanwhile, the European Central Bank on Thursday raised interest rates for the first time in nearly three years and signaled that its restrictive policy stance is likely to remain in place through 2027. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures were up 1.5% and 1.3%, respectively.