European markets poised to open higher amid U.S.-Iran tension watch

• Traders are expecting U.K. retail sales data, German producer prices, and PMI flash readings across major European economies
• Multiple European companies are scheduled to report earnings on Friday, adding to market movement drivers
• U.S. markets declined overnight due to falling private credit stocks and Middle East tensions, while Asian markets were mostly lower

Market Summary: European Markets Set to Rise Amid Geopolitical Tensions

Market Opening Expectations:

European markets are positioned for modest gains at Friday's open, with London's FTSE 100 expected to rise 0.5%, Germany's DAX up 0.3%, and France's CAC advancing 0.6%, according to IG data.

Key Market Drivers:

*Earnings Season:* Multiple European companies are scheduled to report quarterly results on Friday, adding to earnings momentum across the region.

*Economic Data:* Traders await several critical data releases including:

• U.K. retail sales figures
• German producer price index
• PMI flash reports for the U.K., France, Germany, and the eurozone

Geopolitical Risk:

U.S.-Iran tensions remain a significant market concern after President Donald Trump indicated he would decide on potential military action against Iran within the next 10 days. This escalating Middle East situation is weighing on investor sentiment.

Global Market Context:

• U.S. markets declined overnight, pressured by weakness in private credit stocks and Middle East tensions
• Asian markets traded mostly lower on Friday, reflecting the risk-off sentiment
• U.S. markets are anticipating key economic releases, including the Personal Consumption Expenditures (PCE) index—the Federal Reserve's preferred inflation gauge—and fourth-quarter GDP data

Market Implications:

Despite cautious global sentiment and geopolitical headwinds, European equities show resilience with expected positive openings. However, the combination of U.S.-Iran tensions and incoming economic data suggests potential volatility ahead. Investors are balancing corporate earnings optimism against broader macroeconomic and geopolitical uncertainties.