European stocks are expected to open higher on Tuesday, with Germany's DAX projected to rise by 0.23%, France's CAC 40 by 0.34%, Italy's FTSE MIB by 0.3%, and the U.K.'s FTSE 100 also seen opening slightly higher, according to IG data [1]. This positive sentiment comes as investors await Washington's response to an Iranian peace proposal and anticipate earnings reports from major companies including Novartis, Airbus, BP, and Barclays [1].
The core event driving market attention is the news that U.S. President Donald Trump and his national security team discussed Iran's proposal to reopen the Strait of Hormuz if the U.S. lifts its blockade and the ongoing war ends, as confirmed by White House press secretary Karoline Leavitt [1]. The proposal would delay negotiations on Tehran's nuclear ambitions to a later date, according to earlier reports from Axios and The Associated Press [1]. However, it remains unclear whether Trump, who has insisted that the blockade will not be lifted until a deal with Iran is "100% complete," is considering the offer to end the two-month-old war [1]. Oil prices edged higher overnight amid uncertainty regarding the outcome of the conflict [1].
Global market focus is also on upcoming central bank meetings this week. The U.S. Federal Reserve, European Central Bank, and Bank of England are all set to announce monetary policy decisions, with expectations that the ECB and BOE will keep benchmark interest rates unchanged but may signal openness to future hikes [1]. The Federal Reserve's policy decision on Wednesday could be Jerome Powell's final meeting as chair before Kevin Warsh is expected to take over in May, following the Department of Justice's decision to drop its criminal probe into Powell [1].
Overall, the combination of geopolitical developments, corporate earnings, and central bank decisions is contributing to cautious optimism in European markets at the start of the trading day.
CONCLUSION
European markets are set to open higher as investors monitor U.S.-Iran developments and await key earnings and central bank decisions. Uncertainty over the Iran peace proposal and upcoming monetary policy announcements are keeping market sentiment cautiously positive.