European markets are set to open in mixed territory on Thursday, reflecting heightened investor caution amid ongoing geopolitical tensions in the Middle East. Traders are closely monitoring the intensifying conflict between the U.S., Israel, and Iran, which has created uncertainty across global markets.
The U.K.’s FTSE index is expected to start 0.5% higher, while Germany’s DAX could open 0.2% lower, France’s CAC 40 down 0.25%, and Italy’s FTSE MIB around 0.2% lower, according to IG data. Spain’s IBEX is forecast to open 0.5% lower after a diplomatic row with U.S. President Donald Trump, who criticized Spain for denying the use of its bases for potential strikes on Iran.
Geopolitical risks remain at the forefront as Israel launched a fresh round of attacks on Tehran on Wednesday. Israeli defense officials have pledged to “crush” Iran’s military capabilities, while the U.S. claims to have destroyed 17 Iranian ships and nearly 2,000 targets. Analysts warn that the war, dubbed “Operation Epic Fury,” could drag on if Iran proves more resilient than expected.
Meanwhile, developments within Iran are drawing international attention. Senior clerics responsible for selecting the next supreme leader are reportedly considering Mojtaba Khamenei, the son of the late Ayatollah Ali Khamenei, as a potential successor. The evolving political landscape in Tehran adds another layer of uncertainty to already volatile markets.
Investors are also awaiting key corporate earnings, including reports from Merck, DHL Group, Reckitt Benckiser, Galderma Group, and Universal Music Group. In addition, the latest EU retail sales data are expected to provide insight into consumer trends across the region, potentially influencing trading decisions amid the geopolitical turmoil.
source: cnbc