FX.co ★ European Markets Poised for Cautious Open

European equity markets are poised for a subdued opening on Friday as investors consider renewed trade tensions and await the release of new inflation data from Germany. Futures for the Euro Stoxx 50 and Stoxx 600 indices are trading either flat or with slight gains in premarket activity, reflecting a cautious market atmosphere. Investor sentiment remains fragile following a decision by a U.S. appeals court to reinstate the reciprocal tariffs imposed by President Donald Trump, overturning an earlier federal court decision that had found them unlawful. Adding to the uncertainty, U.S. Treasury Secretary Scott Bessent noted that negotiations between the U.S. and China are "somewhat stalled," indicating that substantial progress might now require direct engagement between the nations' leaders. In Europe, attention shifts to Germany's inflation data for May, which could provide new insight into the European Central Bank's monetary policy, particularly as officials navigate the balance between the risks of inflation and indications of slowing economic growth.