European equity markets were set to open higher on Wednesday, rebounding from the previous session’s losses as investors remained cautiously optimistic that the US and Iran could still reach a peace agreement despite renewed tensions in the Middle East.
On the monetary policy front, ECB policymaker and Bank of France Governor François Villeroy de Galhau reiterated on Tuesday that the central bank “will do what is necessary” to bring inflation back to its 2% target. Separately, ECB Executive Board member Isabel Schnabel said the ECB should proceed with an interest rate hike in June even if Middle East tensions subside quickly.
With no major economic data releases or corporate earnings reports scheduled in Europe on Wednesday, investors remained focused on geopolitical developments and signals from central bank officials. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures were both up about 0.3%.