European Markets Hesitant Amid Conflicting Signals on US-Iran Diplomacy

European equity markets are expected to open with fragmented momentum on Thursday, reflecting investor uncertainty over the trajectory of the conflict between the United States and Iran. Traders are currently navigating a series of conflicting signals that have left the direction of travel unclear. Market optimism was initially fueled by U.S. President Donald Trump, who stated in a Wednesday interview that the conflict was "very close to over." This sentiment contributed to a broader rally in Asian markets overnight, highlighted by the Nikkei 225 reaching a record high, tracking previous gains on Wall Street where the S&P 500 and Nasdaq Composite also hit fresh records. However, the narrative has become clouded by contradictory reports. While the Associated Press cited regional officials claiming an "in principle agreement" to extend a fragile two-week ceasefire, a senior U.S. official told CNBC that no formal agreement for an extension has been reached. The official noted that while engagement continues, a definitive deal is not yet in place. Beyond the geopolitical tension, the market is bracing for key economic data. The U.K. is set to release February GDP figures, and the Eurozone will publish final inflation data for March. This follows flash data showing Eurozone inflation climbed to 2.5% in March from 1.9% in February. On the corporate front, investors are awaiting earnings results from several major entities, including Vinci, Tesco, Aker, Pernod Ricard, and Rentokil Initial. Early data suggests a slight positive bias for Germany's DAX and Italy's FTSE MIB, while the U.K.'s FTSE and France's CAC 40 are expected to open slightly lower.