Traders work on the floor of the American stock exchange AMEX at the New York Stock Exchange (NYSE) on Wednesday, May 6, 2026 in New York, USA.
Michael Nagle | Bloomberg | Getty Images
LONDON — European stock markets are expected to open in negative territory as the prospect of a quick resolution to the U.S.-Iran war looks increasingly remote.
british FTSE100 The index is expected to open 0.5% lower, with Germany’s dachshund France, down 0.76% CAC40 Italy decreased by 0.4%. FTSE MIB According to IG data, it fell 0.56%.
Optimism about an impending U.S.-Iran peace deal received a reality check late Monday when President Donald Trump said the ongoing ceasefire was “on life support” after Iran sent an “unacceptable” rebuttal to U.S. proposals to end the war.
President Trump told reporters in the Oval Office that the month-long ceasefire is “incredibly weak.”
Oil prices rose following the remarks, and stock exchanges in the Asia-Pacific region were trading mixed overnight. Meanwhile, U.S. stock futures were flat on Monday night as traders awaited the April consumer price index release. Inflation is expected to rise 3.7% from a year ago, according to a survey of economists from Dow Jones.
Britain’s growing political crisis was also the focus of European markets on Tuesday, with more than 70 Labor MPs calling on Prime Minister Keir Starmer to resign or set a timetable for his resignation. This follows the ruling party’s disastrous results in last week’s local government elections.
The prime minister took responsibility for the poor election result and admitted on Monday that he had “doubts”. Mr Starmer vowed to “stand up to the big challenges” facing the country, but his speech failed to impress party insiders as several cabinet ministers resigned on Monday.
Earnings reports are provided by siemens energy, bayer, vodafone, empire brand and Uniper on tuesday. Data releases include German inflation statistics and EU economic sentiment statistics.
