08.04.202606:10:53UTC+00European Stocks Set for Strong Open

European equity markets were poised to open sharply higher on Wednesday after the US, Iran, and Israel agreed to a two-week ceasefire to facilitate negotiations on a potential deal to end the war. President Donald Trump postponed planned strikes on Iranian civilian infrastructure, describing the arrangement as a “double-sided ceasefire,” while Iran agreed to reopen the Strait of Hormuz for two weeks, with all transit to be coordinated with Iran’s Armed Forces.

Global equities had previously sold off sharply following the outbreak of the conflict, as surging energy prices heightened inflation risks and strengthened expectations of interest rate hikes. In Europe, investors will be focused on German factory orders, French trade data, and Eurozone producer price index (PPI) and retail sales figures. There are no major corporate earnings scheduled for release. In premarket trading, futures on the Euro Stoxx 50 and Stoxx 600 were up more than 5% and 4%, respectively.