European Equity Futures Edge Higher on US-Iran Talks and UK Growth Data

European Markets Track Global Optimism

European equity index futures pointed to a firmer start to Thursday’s session, with Euro Stoxx 50 and Stoxx 600 futures both up around 0.2% in premarket trading. The positive tone followed global equity gains, driven by renewed optimism that Washington and Tehran could extend their current two-week ceasefire to allow more time for negotiations toward a broader peace deal.

Despite the diplomatic progress, the Strait of Hormuz remained effectively closed under a dual blockade, highlighting ongoing geopolitical risks. Nonetheless, sentiment in equity markets was bolstered by strong corporate earnings reports and a rebound in technology shares worldwide.

In the previous session, the FTSE 100 closed at 10,559.58, down 0.47%, while Germany’s DAX and France’s CAC ended the day unchanged. The broader Euro Stoxx 600 stood at 617.27, providing a reference point for Thursday’s expected move higher.

Focus on UK GDP, Eurozone Inflation and Corporate Earnings

Macroeconomic data and corporate updates were set to guide European trading. In the UK, investors were watching the release of February 2026 monthly GDP figures. The UK economy expanded 0.5% month-on-month in February, marking its strongest growth rate since January 2024.

In the euro area, attention was on the final March inflation readings for both the Eurozone and Italy, which could influence expectations for monetary policy and growth in the region. At the same time, regulatory confidence in the financial system was highlighted by comments from the head of the European banking watchdog, who stated that European banks can withstand current shocks.

On the corporate side, earnings reports from several major companies were in focus, including Tesco, Pernod Ricard, and Viscofan, among others. These results were expected to provide additional insight into sector performance and underlying demand conditions across European consumer and industrial markets.

FAQ

Why are European equity markets expected to open higher?
European equity futures are pointing higher mainly due to improved global risk sentiment, driven by optimism over renewed US-Iran negotiations, strong corporate earnings, and a rebound in technology shares.

What recent economic data has influenced UK market sentiment?
The UK economy grew by 0.5% month-on-month in February 2026, its strongest expansion since January 2024, which is a key factor for investor assessments of UK growth momentum.

Which European indices and levels were highlighted from the previous session?
The FTSE 100 closed at 10,559.58, down 0.47%, while the DAX and CAC finished unchanged. The Euro Stoxx 600 stood at 617.27.

What is the European banking watchdog’s latest assessment of the banking sector?
According to the head of the European banking watchdog, European banks are currently able to withstand prevailing shocks in the financial system.