April 17 (Reuters) - A subdued STOXX 600 was on track to notch its fourth straight weekly gain on Friday, as caApril 17 (Reuters) - A subdued STOXX 600 was on track to notch its fourth straight weekly gain on Friday, as cautious investors waited for a potentially pivotal weekend that could bring the Middle East conflict closer to resolution.
The pan-European stock index (.STOXX), was up 0.1% at 617.83 points, as of 0849 GMT, and it remained on track to record modest gains for the week.
Regional bourses were mixed, with Germany's DAX (.GDAXI), up 0.6%, while London's FTSE 100 (.FTSE), fell 0.1%.
The STOXX 600 has clawed back much of the ground it lost since hostilities began, yet European equities have struggled to recapture their pre-conflict allure relative to other global markets, with persistently elevated oil prices being a constant drag.
U.S. President Donald Trump said the next meeting between the U.S. and Iran may take place over the weekend, when their current ceasefire is due to expire.
"Europe is more susceptible to energy price shocks from what is going on in the Strait of Hormuz (which continues to operate under severe restrictions)," said Danni Hewson, head of financial analysis at AJ Bell.
"Further, this goes beyond just energy, with airlines warning that jet fuel could run out within weeks, food producers struggling with gas shortages, and fertiliser costs rising sharply. These are real operational pressures that eat into company profits and dampen investor confidence."
The conflict has cast a shadow over European corporate prospects, even as expectations for strong first-quarter earnings remain.
Investors refrained from making big bets on Friday, following last weekend's unsuccessful negotiations between the U.S. and Iran, adopting a wait-and-see approach.
In sectors, media and technology (.SX8P), were leading the gainers, up 1.2 and 0.8%, respectively.
Luxury stocks (.STXLUXP), extended gains from the previous session, rising 1%.
Materials (.SXPP), led declines, dropping 1.3%.
Among other movers, Alstom (ALSO.PA), slumped 30% when it opened with an around 15-minute delay, after the French train maker pulled its three-year cash flow forecast the night before.
Online food ordering firm Delivery Hero (DHER.DE), gained 3.9% after Uber (UBER.N), raised its stake in the company.
On the monetary policy front, the head of the IMF's European Department called on the European Central Bank to raise its key interest rate twice this year to rein in an energy-driven surge in inflation, while recommending that those moves be reversed in 2027.
Markets are currently pricing in around an 80% chance of a pause at the ECB's April meeting, with at least two quarter-point hikes expected before year-end, according to LSEG data.
Reporting by Ragini Mathur in Bengaluru; Editing by Janane Venkatraman and Harikrishnan Nair
utious investors waited for a potentially pivotal weekend that could bring the Middle East conflict closer to resolution.
The pan-European stock index (.STOXX), was up 0.1% at 617.83 points, as of 0849 GMT, and it remained on track to record modest gains for the week.
Regional bourses were mixed, with Germany's DAX (.GDAXI), up 0.6%, while London's FTSE 100 (.FTSE), fell 0.1%.
The STOXX 600 has clawed back much of the ground it lost since hostilities began, yet European equities have struggled to recapture their pre-conflict allure relative to other global markets, with persistently elevated oil prices being a constant drag.
U.S. President Donald Trump said the next meeting between the U.S. and Iran may take place over the weekend, when their current ceasefire is due to expire.
"Europe is more susceptible to energy price shocks from what is going on in the Strait of Hormuz (which continues to operate under severe restrictions)," said Danni Hewson, head of financial analysis at AJ Bell.
"Further, this goes beyond just energy, with airlines warning that jet fuel could run out within weeks, food producers struggling with gas shortages, and fertiliser costs rising sharply. These are real operational pressures that eat into company profits and dampen investor confidence."
The conflict has cast a shadow over European corporate prospects, even as expectations for strong first-quarter earnings remain.
Investors refrained from making big bets on Friday, following last weekend's unsuccessful negotiations between the U.S. and Iran, adopting a wait-and-see approach.
In sectors, media and technology (.SX8P), were leading the gainers, up 1.2 and 0.8%, respectively.
Luxury stocks (.STXLUXP), extended gains from the previous session, rising 1%.
Materials (.SXPP), led declines, dropping 1.3%.
Among other movers, Alstom (ALSO.PA), slumped 30% when it opened with an around 15-minute delay, after the French train maker pulled its three-year cash flow forecast the night before.
Online food ordering firm Delivery Hero (DHER.DE), gained 3.9% after Uber (UBER.N), raised its stake in the company.
On the monetary policy front, the head of the IMF's European Department called on the European Central Bank to raise its key interest rate twice this year to rein in an energy-driven surge in inflation, while recommending that those moves be reversed in 2027.
Markets are currently pricing in around an 80% chance of a pause at the ECB's April meeting, with at least two quarter-point hikes expected before year-end, according to LSEG data.
Reporting by Ragini Mathur in Bengaluru; Editing by Janane Venkatraman and Harikrishnan Nair
