European stock markets are poised to open higher on Friday, with investor attention divided between geopolitical developments involving Iran and the United States and a slate of upcoming economic indicators.
Futures for the pan-European Stoxx 50 index were up 0.9% in pre-market trading, while FTSE 100 futures in the UK rose 0.4%. Ahead of the final regular trading session of the week, Germany's DAX index futures advanced 0.9%, and France's CAC 40 futures gained approximately 0.8%.
If the positive momentum continues into Friday's session, it would mark a fourth consecutive day of gains for the region's major indices. The benchmark Stoxx Europe 600 index has already climbed 2.25% for the week so far.
Investors continue to monitor diplomatic developments between Tehran and Washington. Reports indicating that Iran insists on maintaining enriched uranium on its soil have fueled concerns about a prolonged conflict. This anxiety triggered a sharp rise in oil prices on Thursday, with markets fearing disruptions to crude supplies could last longer than previously anticipated. The rally extended into Friday, with the international benchmark Brent crude holding above $104 per barrel.
The European economic calendar is busy with data releases. Later today, Germany will publish its GfK consumer sentiment index for June, which is expected to gauge the impact of rising energy costs on household confidence. The UK will also release figures on consumer confidence, public sector borrowing, and retail sales, while France's business confidence index is scheduled for release subsequently.
In corporate news, U.S. cosmetics giant Estée Lauder and Spanish beauty group Puig announced on Thursday that they have terminated merger discussions. Following the announcement, Estée Lauder's shares surged more than 10% in after-hours trading in the U.S.
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