(Updates to add Wall Street futures in paragraph 3, Iran latest

in paragraph 8, euro zone data in paragraph 12 and UK gilts in

paragraph 13. Updates prices throughout)

* Microsoft ( MSFT ), Alphabet, Amazon ( AMZN ) and Meta earnings due

* Trump unhappy with latest proposal from Tehran

* Oil prices rise after reports US will extend blockade

By Elizabeth Howcroft

PARIS, April 29 (Reuters) - European stocks fell on

Wednesday but Wall Street futures were up, as markets struggled

for direction ahead of earnings from major U.S. technology firms

and the outcome of the Federal Reserve's latest policy meeting.

U.S. tech stocks had slid in the previous session after a report

that artificial intelligence company OpenAI had missed internal

targets, raising broader concerns about the sustainability of

the AI boom. The Iran war also weighed on sentiment as oil

prices rose.

While stocks picked up during Asian trading overnight,

European indexes were mostly lower at 1108 GMT, with the STOXX

600 down 0.3% and London's FTSE 100 down 0.8%.

Wall Street futures were a touch higher, with Nasdaq e-minis up

0.4% on the day, while Dow Jones and S&P futures were

close to flat .

Earnings from Microsoft ( MSFT ), Alphabet, Amazon ( AMZN )

and Meta are due later in the session.

Shaniel Ramjee, co-head of multi-asset investments at Pictet

Asset Management, said investors would focus on capital

expenditure plans from so-called hyperscalers, which operate

vast data centres and AI infrastructure.

"What we saw yesterday, with OpenAI, was some questions

regarding the targets, and potentially does that impact some of

the spend. The market will be very carefully looking today at

what the hyperscalers say about not only how much they want to

spend, but where that money is coming from, how durable is

that," he said.

OIL PRICE RISES AS IRAN WAR CONTINUES

Two months into the Iran war, there are few signs of an end.

U.S. President Donald Trump said he was unhappy with Iran's

latest proposal, and the Wall Street Journal reported he had

told aides to prepare for an extended blockade of Iran's ports.

In a social media post, Trump urged Iran to sign a deal.

Oil prices rose, with Brent hitting a one-month high. Brent

crude futures for June were last up 2.7% at $114.29 a

barrel, an eighth consecutive day of gains, while U.S. West

Texas Intermediate futures were up 3.1% at $103.06.

Analysts said the United Arab Emirates' decision to quit OPEC

was unlikely to have a major near-term impact on prices, though

it would weaken the oil producers' group. Russia said the move

would boost output and lower prices over time.

Attacks on Gulf countries have subsided since a ceasefire on

April 8.

Euro zone economic sentiment hit its lowest in three and a

half years, data showed, as the Iran war hit the services sector

and inflation continued to rise. Euro zone government bond

yields were at their highest in weeks, as inflation worries

persisted. The European Central Bank is expected to leave rates

unchanged on Thursday.

In the UK, 10-year gilt yields were on track for their

highest close since 2008, as inflation fears from rising oil

prices pushed up borrowing costs globally, and concerns lingered

about the prime minister's future.

FEDERAL RESERVE

Investors were also awaiting the outcome of the Fed's April

meeting, which could be the last with Jerome Powell as head.

Policymakers are expected to keep rates unchanged while

assessing the economic impact of the Iran war.

"Inflation is going to be under scrutiny with it having

this impact and to what extent the Fed wants to look through

that energy price increase," Pictet's Ramjee said.

The dollar index was 0.1% higher at 98.697, while the

euro was down 0.1% at $1.1704. The dollar has acted as a

safe-haven asset during the conflict, although it has fallen

this month from its late-March peak.

U.S. Treasury yields were little changed, with the 10-year yield

at 4.3556%.

Gold prices were down 0.6% at $4,567.14 an ounce,

having hit their lowest since April 2 in the previous session.

(Reporting by Gregor Stuart Hunter. Editing by Kate Mayberry,

Mark Potter and Chizu Nomiyama )