Futures data show a 0.6% increase for the Stoxx 50 and gains for other major indices, suggesting optimism among investors. This comes after the pan-European Stoxx 600 fell to a one-week low due to concerns over the U.S.-Iran war. The upcoming flash inflation data for the euro zone, expected at 10 a.m.
U.K. time, is particularly significant as it will provide insights into how the conflict and the resulting spike in oil and gas prices have influenced inflation, which rose to 3% in April, surpassing the European Central Bank's target. The market is currently pricing in a 94% likelihood of a 25 basis point interest rate hike by the ECB later this month.
Additionally, geopolitical tensions are heightened with the ongoing Russia-Ukraine conflict, which may further impact market sentiment. Investors are also looking at various economic indicators from Europe, including trade balances and unemployment figures, which could provide a broader view of the economic landscape