European Shares Look Set For Steady Open

(RTTNews) - European stocks are seen opening higher on Friday amid renewed optimism about U.S.-Iran talks.

As peace talks continue with Pakistan's mediation, both sides are still at odds over Tehran's uranium stockpile and future control of the Strait of Hormuz.

As Iranian officials review Washinton's latest peace proposal, U.S. Secretary of State Macro Rubio said there were "some encouraging signs" but warned of "other options" if talks fail.

Rubio criticized Iran's efforts to regulate vessel movement through the Strait of Hormuz after reports emerged that Iran is discussing a permanent toll arrangement with Oman for ships transiting the crucial waterway.

While Asian markets extended gains from the previous session, the dollar held near six-week highs amid expectations that elevated oil prices due to the near closure of the Strait of Horuz will fuel inflation and force central banks to keep interest rates elevated.

Brent crude futures were up nearly 2 percent above $104 a barrel but were set for a 6 percent drop this week. Gold prices were subdued at $4,530 an ounce on increased expectations for Federal Reserve rate hikes.

U.S. stocks ended a choppy session slightly higher overnight as oil prices and bond yields retreated on hopes for a diplomatic way out of the war in Iran.

Investors reacted to reports suggesting that Iran's Supreme Leader has issued a directive that the country's near-weapons-grade uranium should not be sent abroad.

Later, a senior Iranian official said no new order has been issued, calling the reports "propaganda by the enemies of the deal."

On the earnings front, chip giant Nvidia reported better than expected first quarter results, but the focus was on how long it can sustain rapid growth.

Walmart reported its slowest growth in a key sales metric in two years and issued a profit warning for the current quarter.

The Dow rose 0.6 percent to reach a new record closing high while the S&P 500 added 0.2 percent and the tech-heavy Nasdaq Composite finished marginally higher.

European stocks ended mixed on Thursday after the release of disappointing regional PMI data.

The pan-European STOXX 600 ended flat with a positive bias. The German DAX dropped half a percent and France's CAC 40 shed 0.4 percent while the U.K.'s FTSE 100 edged up by 0.1 percent.