European equity markets traded cautiously on Friday, with investors remaining on the sidelines ahead of possible U.S.-Iran talks expected over the weekend.
As of 07:03 GMT, the pan-European Stoxx 600 slipped 0.1%, while the FTSE 100 also declined by 0.1%. Germany’s Dax was broadly flat, and France’s CAC 40 posted a modest gain of 0.2%.
U.S. President Donald Trump indicated that another round of face-to-face discussions with Iran could take place this weekend, following earlier talks that failed to secure a lasting ceasefire in the Middle East. He also suggested he may extend the current truce, set to expire later this month, if negotiations with Tehran show progress.
A potential breakthrough emerged on Thursday as a ceasefire between Israel and Lebanon came into force. However, despite the broader de-escalation efforts involving the U.S. and Iran, Israel has continued targeting Iran-backed Hezbollah forces in Lebanon.
Officials from both Israel and Lebanon confirmed the ceasefire, though Hezbollah has not formally endorsed it, stating it would act depending on “how developments unfold.”
Even so, Trump reiterated his view that the Iran conflict, which began in late February, could conclude in the near term.
Oil prices remained below $100 per barrel, as markets weighed the likelihood of a sustained peace agreement. Prices had briefly surged to around $120 per barrel following the outbreak of hostilities, compared with roughly $70 before the conflict.
On the corporate front, the European earnings season is gathering momentum. Shares in Ericsson (NASDAQ:ERIC) dropped more than 3% in early trading after the telecoms group reported first-quarter profit below expectations.
In contrast, Delivery Hero (TG:DHER) advanced over 2% after ride-hailing company Uber increased its stake in the German-based firm.
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