European equity markets were set to open lower on Thursday, as investors remained cautious following signals from the US Federal Reserve that support is building for potential rate hikes later this year. Attention was also focused on the Bank of England’s upcoming policy decision, with markets broadly expecting it to leave interest rates unchanged at 3.75%. The Swiss National Bank was likewise anticipated to keep its policy rate steady at 0%.
On the geopolitical front, President Donald Trump signed an interim peace agreement with Iran that clears the way for the reopening of the strategically important Strait of Hormuz. The accord also provides for the lifting of sanctions on Iranian oil exports, with further negotiations on nuclear issues and possible additional economic incentives for Iran set to follow.
In premarket trading, futures for both the Euro Stoxx 50 and the Stoxx 600 were down by roughly 0.5%.
