BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are seen opening mixed on Wednesday as investors keep a close eye on the unfolding events in the Middle East and react to a warning from the International Monetary Fund that the ongoing conflict involving Iran has decelerated global economic momentum.
According to media reports, Iran and Pakistan are exchanging diplomatic messages, but no official date has been set yet for the resumption of peace talks.
An Iranian embassy official in Islamabad reportedly said the next round of talks could be held later this week or early next week.
Elsewhere, a U.S. statement said that Lebanon and Israel have agreed to hold direct negotiations after 'productive discussions' in Washington on Tuesday.
In economic releases, French CPI data for March, Eurozone industrial production figures for February, U.S. homebuilder confidence data and the release of Fed's Beige Book survey results will be in the spotlight later today.
European Central Bank President Christine Lagarde said Tuesday that the central bank is currently sitting between baseline and adverse scenarios and that policymakers need to keep an eye on the medium term while checking incoming data.
On the earnings front, Bank of America and Morgan Stanley are scheduled to report their quarterly earnings results later today.
Dutch chipmaking equipment giant ASML raised its 2026 sales guidance after beating first-quarter revenue and profit expectations.
Asian markets tracked Wall Street higher to hit a six-week high on optimism over renewed U.S.-Iran talks. U.S. President Trump told Fox News that he views the war as very close to being over.
With a ceasefire framework still loosely in place and the U.S. attempting to control the Strait of Hormuz, there are increased hopes for diplomatic de-escalation.
Oil prices traded slightly higher, with Brent crude prices holding above $95 a barrel after plunging 4.6 percent in the previous session.
On Tuesday, the International Energy Agency predicted that demand for crude oil will likely see its biggest slump in the second quarter of this financial year.
The American Petroleum Institute reported that U.S. crude inventories increased by 6.1 million barrels in the week ending April 10, marking the eighth straight build.
Treasury yields dipped and the dollar index held steady after seven days of losses, while gold was slightly lower at $4,827 an ounce.
Overnight, U.S. stocks rose sharply to extend gains from the previous session after President Trump indicated in an interview that the second round of U.S.-Iran talks 'could happen over the next two days' in Pakistan to work out a deal that could end the war that began on Feb. 28.
Investors also cheered data that showed March producer prices rose by 0.5 percent month-on-month and by 4 percent on a yearly basis, both coming below expectations.
The tech-heavy Nasdaq Composite soared 2 percent and the S&P 500 gained 1.2 percent to reach their best closing levels in over two months, while the Dow climbed 0.7 percent to hit a one-month closing high.
European stocks closed higher on Tuesday amid optimism over possible U.S.-Iran talks and eased concerns about further disruptions to energy supplies.
The pan-European STOXX 600 advanced 1 percent. The German DAX rallied 1.3 percent, France's CAC 40 surged 1.1 percent and the U.K.'s FTSE 100 added 0.3 percent.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
