European markets are poised for a mixed opening on Monday as investors react to the latest setback in peace negotiations between the U.S. and Iran [1]. According to IG data, the U.K.'s FTSE index is expected to open 0.15% higher, while Germany's DAX and France's CAC 40 are projected to be flat, and Italy's FTSE MIB is seen opening 0.13% lower [1]. The fragile market sentiment follows U.S. President Donald Trump's rejection of Iran's counterproposal to end the war in the Middle East, which he described as 'TOTALLY UNACCEPTABLE!' in a Truth Social post on Sunday night [1].
Iran's response to U.S. proposals reportedly included demands for an end to the war on all fronts and the lifting of sanctions, as cited by Iran's semi-official Tasnim news agency [1]. Israeli Prime Minister Benjamin Netanyahu also commented that the war with Iran was 'not over,' emphasizing ongoing concerns about Tehran's nuclear ambitions shared by both the U.S. and Israel [1].
In response to these geopolitical developments, oil futures climbed and U.S. futures traded lower in overnight markets, reflecting heightened uncertainty and risk aversion among investors [1]. There are no major earnings or economic data releases scheduled in Europe for Monday, keeping the focus squarely on geopolitical events [1].
Additionally, attention is turning to President Trump's upcoming trip to China later in the week, where he is expected to meet with Chinese Premier Xi Jinping to discuss a range of issues including trade, rare earth export controls, and global geopolitics [1].
CONCLUSION
The stalling of U.S.-Iran peace talks and the resulting rise in oil prices have set a cautious tone for European markets, with indices expected to open mixed. Investors remain focused on geopolitical risks, particularly in the Middle East, and are also watching for developments from President Trump's upcoming visit to China.