European stocks nudge higher amid U.S.-Iran ceasefire uncertainty

Shares in Europe nudged higher on Friday morning as the fragile ceasefire between the U.S. and Iran continues to test investors’ nerves. 

The pan-European Stoxx 600 index was seen trading up 0.3% shortly after 9:30 a.m. in London, with most sectors in positive territory. The U.K’s FTSE 100, France’s Cac 40 and Germany’s Dax all edged slightly higher after closing in the red on Thursday.

On Thursday, Israeli Prime Minister Benjamin Netanyahu said that the country had agreed to negotiate with Lebanon “as soon as possible.” Tehran’s parliamentary speaker Mohammad Bagher Ghalibaf cited Israel’s continued attacks on Lebanon as a violation of the ceasefire agreement between the U.S. and Iran.

Asian markets rose overnight following the news, with South Korea’s Kospi advancing 1.75%, while the small-cap Kosdaq was 1.65% higher.

Japan’s Nikkei 225 gained 1.88%, while the Topix was flat. Japanese Prime Minister Sanae Takaichi said Friday that the country plans to release 20 days’ worth of oil reserves from May onwards, Reuters reported. Japan had enough oil reserves for 230 days as of April 6.

European markets struggled for direction on Thursday, finishing lower as the fragile truce agreed between the U.S. and Iran already showed signs of strain.

German ‌inflation accelerated ‌to 2.8% in ​March, according to data released Friday, confirming provisional results.

“The significant increase in the prices of energy products is driving up inflation,” said Ruth Brand, President of the Federal Statistical Office. “In particular, motor fuel and heating oil prices have risen sharply for consumers since the start of the Iran war.”

— CNBC’s Lisa Kailai Han and Justina Lee also contributed to this report.