European stocks to open lower as traders assess chances of Iran peace deal
European stocks are expected to open in negative territory on Thursday as investors assess the prospects of a peace deal to end the Iran war.
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A trader works on the floor of the New York Stock Exchange in New York City.
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LONDON — European stocks are expected to open in negative territory on Thursday as investors assess the prospects of a peace deal to end the Iran war.
The U.K.'s FTSE index is seen opening 0.9% lower, Germany's DAX down 1.1%, France's CAC 40 down 1% and Italy's FTSE MIB 0.6%, according to data from IG.
European bourses look set to follow their counterparts in Asia-Pacific lower as investors weigh up mixed signals from U.S.-Iranian negotiations to end the war in the Middle East.
U.S. Secretary of State Marco Rubio said that talks with Iran have made some progress and that "we're going to give it every chance to succeed," adding that the U.S. prefers "the negotiated diplomatic route."
But President Donald Trump has said that he will not permit Iran to control the key Strait of Hormuz as part of a deal.
While a Reuters report said that Tehran had committed to restoring commercial traffic through Hormuz to pre-war levels within one month of an agreement with the U.S., citing Iranian state media, the White House said in a social media post that the report about a memorandum of understanding was "a complete fabrication."
In the meantime, U.S. forces launched fresh strikes in Iran, according to MS Now on Wednesday. These actions were "measured, purely defensive, and intended to maintain the ceasefire," a U.S. official told MS NOW in a statement. Oil prices rose overnight following the developments.
In the U.S., S&P 500 futures were little changed overnight as traders looked ahead to the release of April's personal consumption expenditure price index reading, due out at 8:30 a.m. ET.
The index is the Federal Reserve's preferred gauge of inflation and economists polled by Dow Jones expect a month-over-month increase of 0.5% and year-over-year rise of 3.8%.
There are no major earnings in Europe on Thursday. Data releases include European business and consumer confidence data.
— CNBC's Lisa Kailai Han and Justina Lee contributed to this market report.
