BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European shares are seen opening flat to slightly lower on Tuesday as investors await more clarity on the U.S.-Iran peace deal and seek cues from upcoming central bank meetings.
After the announcement of an interim peace agreement between Washinton and Tehran, some of the biggest questions remain unanswered.
Iranian President Masoud Pezeshkian said that the signed MOU is a draft and a final agreement has yet to be reached.
'The Islamic Republic of Iran has prepared itself for all options, and the government's focus - with or without an agreement-is sincere service to the people,' he said.
U.S. President Trump said the Strait of Hormuz, a critical shipping route for global oil supplies, will be open from Friday but questions remain over waterway fees, Israeli breaches of ceasefire in Lebanon and Iran's nuclear activities.
Asked when the text of the memorandum would be made public, Trump said: 'Probably pretty soon after Friday.'
The agreement, which was electronically signed by leaders in the U.S. and Iran, is expected to be signed in person on Friday in Geneva.
Investors also await a slew of central bank decisions this week for directional cues.
Despite concerns over sticky inflation, the U.S. Federal Reserve is widely expected to keep rates on hold at the conclusion of a two-day meeting on Wednesday under new Chair Kevin Warsh.
Warsh's inaugural press conference, outlining his views on inflation, jobs, and U.S. economic outlook may offer additional clues on the future path of U.S. interest rates.
The Bank of England looks set to keep the base rate at 3.75 percent when it meets on Thursday.
Earlier today, the Bank of Japan raised its interest rate to 1 percent, the highest since 1995, as it battles inflation caused by the Iran war.
Elsewhere, Australia's central bank kept its key interest rate unchanged for the first time this year after three consecutive increases.
Asian markets were mixed in cautious trade as investors paused to assess the durability of the relief rally fueled by the long-awaited U.S.-Iran preliminary deal to end their conflict.
The dollar held near a 10-day low, while gold traded higher at $4,326 an ounce after climbing more than 2 percent to over one-week high in the previous session.
Bent crude futures were modestly lower below $83 a barrel after settling at a three-month low overnight.
U.S. stocks rose sharply overnight, with the U.S.-Iran peace agreement and tumbling oil prices boosting sentiment.
President Donald Trump said a deal with Iran is 'now complete' and authorized the 'toll free opening' of the Strait of Hormuz and the immediate removal of the U.S. blockade of Iranian ports.
Media reports suggest that the U.S.-Iran ceasefire is likely to be extended for 60 days, with the countries set to use that window to negotiate over Iran's nuclear enrichment and the disposal of its highly enriched uranium.
While the Dow surged 0.9 percent to reach a new record closing high, the tech-heavy Nasdaq Composite soared 3.1 percent amid continued optimism over SpaceX and the artificial intelligence trade. The S&P 500 added 1.7 percent.
European stocks ended modestly higher on Monday, giving up some earlier gains sparked by the interim U.S.-Iran agreement to reopen the Strait of Hormuz.
The pan-European STOXX 600 edged up by 0.2 percent. The German DAX rallied 1.1 percent and France's CAC 40 gained 0.4 percent while the U.K.'s FTSE 100 dropped 0.4 percent as tumbling oil prices sent energy stocks such as BP Plc and Shell sharply lower.
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