European stock markets are poised for a stronger open on Wednesday, lifted by growing optimism that tensions between the United States and Iran could ease. Investors reacted positively to signals from Washington suggesting diplomatic efforts are underway to bring an end to the ongoing conflict, improving sentiment across global markets.
Major European indices are expected to post gains, with the U.K.’s FTSE 100 projected to rise by 0.7%, Germany’s DAX by 1.16%, France’s CAC 40 by 0.9%, and Italy’s FTSE MIB by 1.3%, according to market data. The upward momentum reflects a broader sense of relief among traders who have been closely monitoring geopolitical risks in recent weeks.
The shift in market mood follows comments from U.S. President Donald Trump, who indicated that negotiations with Iran are currently in progress. Speaking from the Oval Office, Trump noted that the U.S. had softened its stance, stepping back from threats to target Iranian energy infrastructure due to ongoing discussions. He described the talks as constructive, saying Iran was “talking sense.”
Reports have also emerged that the U.S. presented Iran with a 15-point proposal aimed at ending the conflict, though Iranian officials have pushed back on claims that formal negotiations are taking place. A military spokesperson in Tehran dismissed the reports, suggesting the U.S. was effectively negotiating on its own, highlighting the uncertainty still surrounding the situation.
Despite the mixed signals, global markets have responded with cautious optimism. Gold prices rose amid lingering uncertainty, while oil prices declined, easing concerns about inflation pressures. Meanwhile, Asian markets traded higher overnight and U.S. stock futures edged up, reinforcing a broader global rally. Investors will now turn their attention to key European earnings reports and economic data, including the U.K.’s latest inflation figures and Germany’s business climate survey, for further direction.
source: cnbc