European Indices Poised for Gains Amid Middle East De-escalation Hopes

European stock markets are expected to open on a positive note Thursday, driven by optimism surrounding potential peace agreements and the easing of tensions in the Middle East. Investors are closely monitoring proposed peace talks between Israel and Lebanon, as well as the potential for stabilized shipping transit through the Strait of Hormuz. This geopolitical thaw is coinciding with a better-than-expected GDP update from China, providing a dual catalyst for risk-on sentiment across global indices. Asian markets have already responded favorably, with Japan's Nikkei 225 jumping 2.4% and South Korea's KOSPI rallying 1.85%. Wall Street provided further momentum on Wednesday, as the tech-heavy Nasdaq Composite surged 1.6% to a record close of 24,016.02, and the S&P 500 hit an all-time high of 7,022.95. European futures are mirroring this optimism, with the pan-European Stoxx 50 and DAX futures trading up 0.38% and 0.33%, respectively. The shift in sentiment has led to a retreat in safe-haven assets. The U.S. Dollar Index slipped 0.09% to 97.97, while the EUR/USD pair edged up to 1.1808. In the commodities market, gold prices rallied 0.70% to $4,857.55, and Brent crude futures remained slightly positive at $94.98 as traders assess the likelihood of a U.S.-Iran diplomatic breakthrough.