European stocks are set to open higher on Friday, buoyed by hopes for a ceasefire in the Middle East as Israeli Prime Minister Benjamin Netanyahu expressed readiness for direct negotiations with Lebanon. This optimism comes despite ongoing tensions, including warnings from the IDF about potential escalations with Hezbollah. Investors are also keenly awaiting the U.S. Consumer Price Index (CPI) report, which is expected to show a 1% increase for March, the sharpest rise since 2022, driven by surging energy costs linked to geopolitical tensions.

The anticipated CPI data could influence market sentiment significantly, especially as inflationary pressures persist amid rising oil prices, with Brent crude futures remaining above $96 a barrel. Meanwhile, U.S. stocks rebounded overnight, with the S&P 500 and Nasdaq Composite both posting gains, reflecting a cautious optimism that could spill over into European markets.

Market professionals should closely monitor the upcoming U.S. CPI release, as stronger-than-expected inflation data could impact monetary policy expectations and further influence equity valuations across sectors.

Source: nasdaq.com