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EUROPE BEFORE THE BELL: CEASEFIRE UNDER THREAT

European futures were lower ahead of Friday's open, as the U.S. and Iran clashed in the Middle East, calling their truce into question.

Euro STOXX 50 futures STXEc1 were 0.61% lower, while DAX futures FDXc1 and FTSE futures FFIc1 were respectively down by around 0.7%.

Despite the flare-up, U.S. President Donald Trump said the ceasefire, which has more or less held for a month, was still in effect, keeping alive some hopes for a diplomatic solution to the conflict.

Even so, the latest developments appeared to weigh on sentiment heading into the last trading day of the week, with oil prices nudging higher to trade back around the $100-a-barrel mark after declining for three consecutive days.

Markets in the UK were also waiting for local election results, which could spell trouble for Prime Minister Keir Starmer and revive questions over his leadership, as his Labour party suffered losses across the country.

On the corporate front, Commerzbank CBKG.DE said it plans to cut 3,000 jobs to help it reach more ambitious profit targets as part of a strategy to fend off a takeover by Italy's UniCredit CRDI.MI.

British Airways owner IAG ICAG.L, meanwhile, forecast annual profit to be lower than originally anticipated, saying soaring jet fuel costs and supply disruptions driven by the Iran war will weigh more heavily on earnings than previously expected.

(Sophie Kiderlin)

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