European Stocks Trade Cautiously Ahead of U.S.-Iran Talks
European stock markets remained subdued on Friday, as investors adopted a cautious stance ahead of potential weekend negotiations between the United States and Iran.
Major Indices Show Limited Movement
By early trading hours, the pan-European Stoxx 600 slipped slightly by 0.1%. The UK’s FTSE 100 also declined 0.1%, while Germany’s DAX was largely unchanged. In contrast, France’s CAC 40 posted a modest gain of 0.2%, reflecting mixed sentiment across the region.
Focus Shifts to U.S.-Iran Negotiations
U.S. President Donald Trump indicated that a new round of face-to-face talks with Iran could take place over the weekend. Previous discussions failed to deliver a lasting ceasefire in the Middle East, but Trump suggested he may extend the current truce if progress toward an agreement continues.
Israel-Lebanon Ceasefire Offers Partial Relief
A key development in the region came on Thursday, when a ceasefire between Israel and Lebanon was implemented. While both governments confirmed the agreement, uncertainty remains after Hezbollah stated it would decide its next steps based on how events unfold.
Despite the broader ceasefire framework involving the U.S. and Iran, Israeli forces have continued targeting Iran-backed Hezbollah positions in Lebanon, highlighting ongoing tensions.
Oil Prices Reflect Geopolitical Uncertainty
Oil prices remained below the $100 per barrel mark, as markets closely monitored the evolving geopolitical situation. Earlier in the conflict, crude prices had surged to around $120 per barrel, compared to pre-war levels near $70.
Earnings Season Adds Market Drivers
Beyond geopolitical factors, Europe’s earnings season is beginning to gain momentum. Shares of Ericsson fell more than 3% after the company reported first-quarter profits below expectations.
Meanwhile, Germany-based Delivery Hero saw its stock rise over 2% after Uber announced an increase in its stake in the company, boosting investor confidence.
