European markets set to open higher as investors monitor U.S.-Iran tensions

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Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., February 9, 2026.

Brendan McDermid | Reuters

LONDON — European stocks were set to open higher on Friday as traders await economic data and more earnings reports, while monitoring tensions between the U.S. and Iran.

London’s FTSE 100 is set to open 0.5% higher, Germany’s Dax 0.3%, and France’s CAC 40 0.6%, according to data from IG.

Friday will see more European companies reporting earnings, including Air Liquide, Danone, Sika, Anglo American, and Kingspan Group.

Traders are also parsing through economic data, including U.K. retail sales figures, German producer price figures, and PMI flashes for the U.K., France, Germany, and the euro zone.

The U.K.'s retail sales figures were estimated to have risen 1.8% in January 2026, up from a 0.4% increase in December 2025, pointing to an uptick in the economy, according to data from the Office for National Statistics. Additionally, sales volumes rose by 4.5% over the year.

Britain’s public finances, released Friday, showed that the public sector recorded a £30.4 billion ($40.8 billion) surplus in January 2026, which is double the level recorded a year earlier. Public borrowing stood at £112.1 billion since the start of the fiscal year in April 2025, 11.5% less than the same period a year ago.

The British pound was down 0.1% against the dollar, trading at $1.344, following the release of the data. British government bond yields, known as gilts, edged higher. The 10-year Gilt was up less than a basis point to 4.376%, while the 2-year Gilt rose 1 basis point to 3.588%.

Geopolitical tensions are also in focus after U.S. President Donald Trump said on Thursday he would decide whether to take military action against Iran in the next 10 days.

U.S. futures climbed overnight as key economic data is due to be released, including the personal consumption expenditures index, which is the Federal Reserve’s preferred inflation gauge, and the gross domestic product report for the fourth quarter.

Asia-Pacific markets were mostly lower on Friday, after the three major Wall Street indexes were down overnight amid a drop in private credit stocks and the tensions in the Middle East.