European equities opened the day with little directional conviction as investors awaited potential weekend in-person negotiations between the United States and Iran. Markets displayed a degree of caution tied to the diplomatic trajectory in the Middle East, keeping broad indexes nearly flat.
By 03:03 ET (07:03 GMT), the pan-European Stoxx 600 had slipped 0.1%. The United Kingdom's FTSE 100 was down 0.1%, Germany's Dax was largely unchanged, and France's CAC 40 ticked up about 0.2%.
U.S. President Donald Trump said a fresh round of in-person talks with Iran could occur this week, following initial discussions last weekend that did not produce a lasting end to hostilities in the region. He indicated he would consider extending a ceasefire slated to expire later this month if Washington neared an agreement with Tehran.
One of the negotiating obstacles appeared to make limited progress on Thursday, when a pause in fighting between Israel and Lebanon went into effect. Despite what has been described as a U.S.-Iran ceasefire, Israel has continued strikes against Iran-aligned Hezbollah militants in neighboring Lebanon. Officials from both Israel and Lebanon confirmed the truce, while Hezbollah itself did not say whether it would accept the pause and indicated its actions would depend on how events develop.
President Trump reiterated his expectation that the Iran war, which began in late February, should conclude soon.
Oil traded below $100 a barrel as market participants monitored the outlook for a durable peace. Since the outbreak of hostilities, crude earlier spiked to about $120 a barrel from pre-conflict levels near $70 a barrel, though prices had since moderated amid hopes the diplomatic process might reduce tail risks for supply.
Outside the geopolitical narrative, the European earnings season is picking up momentum and beginning to influence individual equity moves. Ericsson's shares fell more than 3% in early trading after the Swedish telecom group reported first-quarter profit that missed market expectations. In Germany, Delivery Hero's stock rose by over 2% after ride-hailing company Uber increased its stake in the business.
Overall, market participants appeared reluctant to take strong directional positions ahead of potential developments in U.S.-Iran negotiations, while sector- and company-specific news continued to create pockets of volatility across the market.