European stocks were set for a subdued start on Thursday, with futures for the Euro Stoxx 50 and Stoxx 600 hovering near the flatline as investors monitored geopolitical developments in the Middle East and new NATO commitments.
US officials are expected to meet with their Iranian counterparts next week in an effort to curb Tehran’s nuclear ambitions, while the ceasefire between Iran and Israel continues to hold.
Meanwhile, NATO’s decision to raise defense spending targets from 2% to 5% of GDP by 2035 fueled a rally in European defense stocks, though broader market sentiment remained cautious.
Investors are now awaiting Germany’s latest GfK consumer confidence data and earnings results from Swedish retail giant H&M for further direction.