LIVE MARKETS-Europe before the bell: stocks set for drop, heading for sharp weekly fall

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EUROPE BEFORE THE BELL: STOCKS SET FOR DROP, HEADING FOR SHARP WEEKLY FALL

European stock futures are pointing to a softer open on Friday at the end of a week where optimism about a peace deal in Iran faded and energy supply disruptions remained.

Iran on Thursday flaunted its tightened grip over the key Strait of Hormuz with a video of commandos in a speedboat storming a huge cargo ship, while U.S. President Donald Trump said he had ordered the Navy to "shoot and kill" Iranian boats laying mines in the Strait, and step up demining activity.

Brent crude futures LCOc1 are holding above $105/barrel, keeping sentiment pinned down, especially in Europe where concerns lingered of fuel shortages.

Euro STOXX 50 futures STXEc1 are down 0.6%, with the index already dow7 2.7% this week.

Futures on the CAC FCEc1 and FTSE FFIc1 are down about 0.8% while futures on the DAX FDXc1 are flat.

Earnings continue to be the other dominant theme in markets. Germany's SAP SAPG.DE reported a 17% increase in first-quarter profit, beating estimates, due to strong growth in its cloud business.

Swiss cement company Holcim HOLN.S reported better-than-forecast first-quarter results and confirmed its full-year outlook.

(Samuel Indyk)

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