European stocks are expected to open in negative territory on Thursday, March 26, as investors react to uncertainty surrounding Middle East peace talks, particularly between the U.S. and Iran [1]. According to IG data, the U.K.'s FTSE 100 index is projected to open 0.2% lower, Germany's DAX down 0.6%, France's CAC 40 down 0.4%, and Italy's FTSE MIB 0.7% lower [1]. This cautious sentiment follows conflicting statements from Washington and Tehran over the past 48 hours regarding the status of negotiations. The U.S. claims that talks over a proposed peace plan are ongoing, while Iran denies any direct interaction with Washington [1].
Iranian Foreign Minister Abbas Araghchi told state media that officials are reviewing an American proposal to end the war but emphasized that Tehran has no intention of negotiating directly with the U.S. He clarified that exchanging messages through mediators does not constitute negotiations, as reported by Reuters [1]. Furthermore, Iran state media reported that the Islamic Republic would reject a U.S. ceasefire offer and instead counter with its own five-point list, which includes a demand for Tehran to control the Strait of Hormuz [1].
Global market reactions have been mixed, with Asian markets showing varied performance overnight and U.S. stock futures remaining little changed early Thursday [1]. European investors are also closely monitoring the G7 foreign ministers meeting in France, where the wars in Iran and Ukraine are expected to be key topics. Delegations from Saudi Arabia, Brazil, India, South Korea, and Ukraine will participate in the discussions [1].
In addition to geopolitical developments, European markets are awaiting earnings reports from Hennes & Mauritz, Hapag-Lloyd, and Next, as well as business and consumer confidence data from Germany, France, and Italy [1].
CONCLUSION
European markets are poised for a cautious start, reflecting investor concerns over the uncertain status of peace talks between the U.S. and Iran. The mixed signals from both sides and Iran's rejection of the U.S. ceasefire proposal have contributed to negative sentiment. Market participants will be closely watching geopolitical developments and upcoming economic data for further direction.