Global Economy
European Markets Poised for Modest Gains as US‑Iran Ceasefire Talks Progress
European equity indices are expected to open with modest gains on Friday as investors await a possible deal between Washington and Tehran to extend their 60‑day cease‑fire and reopen the Strait of Hormuz. Early data points to slight upticks in the CAC 40, DAX, FTSE and Euro Stoxx 600, but market sentiment remains cautious pending official confirmation.
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European markets expected to open modestly higher
Investors are watching for confirmation of a possible agreement between Washington and Tehran to extend their 60‑day cease‑fire and lift navigation restrictions in the Strait of Hormuz. Early indicators suggest a cautious uplift across the major European indices.
- Paris CAC 40: +0.29% at open
- Frankfurt DAX futures: +0.25%
- London FTSE futures: +0.04%
- Euro Stoxx 600 futures: +0.19%
Reuters reported that the United States and Iran reached a draft protocol on Thursday to prolong the truce and reopen the Strait of Hormuz, pending President Trump’s sign‑off. Iran’s state media, however, denied that a final deal had been concluded, underscoring the remaining uncertainty.
Because the agreement has not yet been officially announced, market reactions are muted. The dollar and sovereign bond yields remain relatively stable, while analysts caution that any short‑term relief from a US‑Iran deal is unlikely to curb the broader inflationary pressure sparked by soaring oil prices.
For now, investors will keep a close eye on any official statement before adjusting their positions.