European stock markets closed the week on a cautiously positive note, with major indices advancing amid lingering hopes for diplomatic progress in Iran-US talks, even as negotiations stalled without a permanent deal. The Stoxx Europe 600 rose 0.6% to 616.03 points, while the DAX gained 0.4% to 23,906.79 and the CAC 40 added 0.5% to 8,283.80.

US Vice President JD Vance returned from Pakistan without an agreement, describing the US offer as Iran's "last and best." He emphasized Teheran's refusal to abandon nuclear ambitions as the core issue. Iranian sources indicated no immediate plans for further nuclear talks, though diplomacy remains possible. President Trump expressed doubts on Truth Social about Iran's compliance, particularly regarding the Strait of Hormuz shipping lanes. Analysts at Jefferies noted the fragile ceasefire in the Middle East could create short-term market dips but also buying opportunities.

Oil prices climbed about 1%, pushing Brent crude toward $97 per barrel, ahead of OPEC and IEA supply reports.

Chip stocks outperformed, buoyed by Taiwan Semiconductor Manufacturing's (TSMC) robust March sales. TSMC reported a 31% month-on-month and 45% year-on-year increase, with Q1 revenue up 35.1% from last year. In Europe, STMicroelectronics climbed 2.7%, Infineon Technologies rose 1.7%, and ASML Holding gained 1.1%. ASML, trading at €1,112 with an Outperform consensus and €1,600 target, reports earnings Wednesday.

US producer prices and CPI data due later Friday will reflect early Mideast war impacts. China's March CPI eased to 1.0% year-on-year, with monthly deflation. Germany's inflation accelerated to 2.7%.

The earnings season ramps up, featuring US banks like JPMorgan and Goldman Sachs, luxury groups LVMH and Kering, plus TSMC Thursday. In Amsterdam, Havas reports Tuesday, followed by ASML, then Basic-Fit and others Thursday. Bank of America anticipates 3% earnings growth for European firms, led by energy and financials.