European Markets Eye Gains Amid Geopolitical Friction and Mega-Cap Earnings Week

European stocks are expected to trend higher on Monday, buoyed by a strong Friday performance in the US, where the S&P 500 and Nasdaq 100 reached new record highs driven by renewed optimism surrounding artificial intelligence. This positive momentum arrives amid a complex geopolitical backdrop that continues to pressure energy markets. Uncertainty persists regarding the conflict between the US and Iran. While US equity futures are ticking higher, President Donald Trump has suggested a swift conclusion to the conflict, claiming Iranian oil infrastructure is under severe stress due to US blockades. Reports indicate Iran has offered a proposal to reopen the Strait of Hormuz, though Tehran has officially rejected negotiations conducted under threat or blockade. The impact on commodities is significant, with Brent crude futures climbing above $107 per barrel as the Strait of Hormuz remains effectively closed. Analysts warn that even if the waterway reopens, normalizing oil flows could take several months. Meanwhile, gold has edged up to $4,718 an ounce as investors seek safety amid the instability. The coming week is critical for global macro direction. The US Federal Reserve is scheduled to hold its policy meeting on April 28-29, with rates expected to remain unchanged for the third consecutive time. Similar policy decisions are anticipated from the European Central Bank, the Bank of Japan, and the Bank of England. Simultaneously, the market enters a high-stakes earnings window. Financial results are due from the world's largest technology firms, including Apple, Amazon, Alphabet, Microsoft, and Meta Platforms. These reports, combined with central bank guidance, will likely dictate market direction for the remainder of the quarter.