BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are seen opening higher on Friday as investors watch the latest developments in the Middle East war and await U.S. CPI data for direction.
Software stocks could be in focus after Anthropic held back the wide release of a powerful AI model over concerns it could expose hidden cybersecurity vulnerabilities.
Despite concerns over Israeli aggression in Lebanon, market participants remain hopeful that the ceasefire between the United States and Iran would hold.
Israeli Prime Minister Benjamin Netanyahu announced that his country was ready for direct negotiations with Lebanon, while insisting that Israel's attacks across the country targeting Hezbollah would continue.
The IDF warned Hezbollah may expand rocket attacks beyond northern Israel, raising fears of a wider escalation.
Elsewhere, Ukraine and Russia have agreed to a rare 32-hour ceasefire for Orthodox Easter, with both sides announcing a temporary halt in fighting.
In economic releases, the March U.S. CPI report will be published later today, with economists expecting a 1 percent increase in the consumer price index for the month, the sharpest one-month advance since 2022, as energy costs spike amid the war with Iran.
Official data showed earlier in the day that China's factory-gate prices in March turned positive for the first time in ?more than three years, driven by higher import costs linked to West Asia tensions. The consumer price index rose 1 percent year on year in March.
Asian markets were mixed despite U.S. President Donald Trump threatening Tehran over charging fees in the Strait of Hormuz. Trump said Washington, as the 'winner' of the war, has a 'concept' for charging a toll in the strategic waterway.
Slamming Iran over Hormuz curbs and the evolving situation, Trump said Iran was 'doing a very poor job' and described its conduct as 'dishonorable.'
According to maritime tracking data, just 10 vessels have passed through Strait of Hormuz since the Middle East war ceasefire took effect, tightening energy supplies and fueling inflationary pressures.
Addressing the nation, Iran's newly appointed Supreme Leader, Mojtaba Khamenei, declared victory in the West Asia conflict and vowed that Iran will not let the U.S.-Israel go unpunished for their alleged acts of aggression.
Underscoring the lingering uncertainty and intensifying supply concerns, Brent crude futures held above $96 a barrel in Asian trade.
The dollar was on track for its biggest weekly fall since January, while gold dipped slightly but was on track for its third weekly gain.
U.S. stocks reversed early losses to end higher overnight after Israel agreed to direct talks with Lebanon 'as soon as possible', bolstering expectations for a peaceful resolution to the six-week Middle East conflict.
In economic releases, PCE inflation held firm in February as core prices matched forecasts.
Personal income fell 0.1 percent in the month, missing forecasts for a 0.3 percent rise, while personal spending rose 0.5 percent, meeting expectations.
Fourth-quarter GDP growth was revised lower to a 0.5 percent rate, while jobless claims rebounded last week to their highest level since February.
The S&P 500 rose 0.6 percent and the tech-heavy Nasdaq Composite surged 0.8 percent to clock their seventh daily gain, while the Dow advanced 0.6 percent.
European shares retreated on Thursday, pulling back from their strongest rally in over four years as the fragile truce agreed between the U.S. and Iran showed signs of strain.
The pan European Stoxx 600 eased 0.2 percent. The German DAX dropped 1.1 percent, France's CAC 40 dipped 0.2 percent and the U.K.'s FTSE 100 finished marginally lower.
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