European markets expected to rise amid peace talks

In Short:
– European stocks expected to rise; U.K. FTSE steady, Germany’s DAX up 0.3%, France’s CAC 40 up 0.2%.
– Iran proposes reopening the Strait of Hormuz; U.S. central banks’ meetings will address inflation and growth.

European stocks are set for a positive start to the week amid developments in Iran-U.S. peace talks and upcoming central bank meetings.The U.K.’s FTSE index is expected to remain unchanged, while Germany’s DAX is projected up 0.3%, France’s CAC 40 up 0.2%, and Italy’s FTSE MIB up 0.26%, according to data from IG.

Iran proposals surface

Market sentiment is optimistic as Iran reportedly presented a proposal to the U.S. to reopen the Strait of Hormuz and postpone nuclear talks.

This follows U.S. President Donald Trump cancelling plans for envoy Steve Witkoff and Jared Kushner to visit Islamabad for talks.

President Trump expressed in a post on Truth Social that there is confusion over who leads in Tehran and claimed the U.S. holds all the leverage.

Iran’s Foreign Ministry spokesman Esmaeil Baqaei confirmed there are no planned meetings between Tehran and Washington.

Attention will shift to central banks, with the U.S. Federal Reserve, European Central Bank (ECB), and Bank of England (BOE) holding meetings this week to discuss inflation and growth.

The Fed’s decision on Wednesday may be Jerome Powell’s last before Kevin Warsh’s expected appointment in May, following the dropping of a criminal probe into Powell.

The ECB and BOE are also likely to maintain their current interest rates, though future hikes could be on the table.

Investors will monitor developments in the U.S. following an armed incident at the White House Correspondents’ Dinner, where the suspect has been identified as Cole Allen of Torrance, California.

Earnings from Deutsche Börse and German consumer confidence data will be released on Monday.

Market outlook remains strong

Further details from the central bank meetings will be closely watched, as they are critical in shaping economic expectations.

Inflation concerns continue to dominate discussions among policymakers.

Continued updates on geopolitical developments will further influence market dynamics.