European equity markets were set to open lower on Friday as escalating tensions in the Middle East intensified worries about rising inflation and the broader economic outlook. Investor sentiment remained cautious amid stalled US-Iran peace talks and continued blockades in the Strait of Hormuz, which have triggered another spike in energy prices this week.
Still, some diplomatic progress offered a measure of support: the US-Iran ceasefire has been extended indefinitely to allow more time for negotiations, while Israel and Lebanon have agreed to lengthen their truce by three weeks.
In Europe, the focus will shift to a series of key data releases, including UK retail sales, French consumer confidence, and Germany’s Ifo Business Climate survey. On the corporate side, investors are awaiting earnings from Orange, Holcim, Banco Sabadell, Accor, Renault, and others.
In premarket trade, futures on the Euro Stoxx 50 and Stoxx 600 were both down about 0.6%.
