European stock markets are anticipated to open broadly higher on Tuesday as investors closely monitor developments ahead of the expiration of the two-week ceasefire agreement between the United States and Iran. According to data from financial services provider IG, the UK's FTSE 100 is projected to open slightly higher, Germany's DAX index is expected to rise by 0.24%, France's CAC 40 index by 0.2%, and Italy's FTSE MIB by 0.6%.
Global markets continue to assess the prospects for peace negotiations and the potential for an escalation of conflict. The two-week ceasefire agreement reached by the US and Iran was originally scheduled to expire at 00:00 GMT on Tuesday (08:00 PM Eastern Time on Tuesday). However, US President Donald Trump stated in an interview on Monday that the ceasefire would end on "Wednesday evening Washington time."
On Monday, Trump once again threatened Iran with overwhelming military force, declaring that if no agreement is reached before the fragile ceasefire expires, "a lot of bombs will start falling." This latest threat was issued during a telephone interview, as the outlook for a new round of peace talks between the US and Iran grows increasingly uncertain.
Overnight, Asia-Pacific stock markets showed mixed performance. Following the end of the Nasdaq Composite's 13-session winning streak in regular trading, US stock futures edged higher in early Tuesday trading. Companies releasing earnings reports include Rio Tinto, Thales, ASM International, Beiersdorf, Associated British Foods, Moncler, and Vivendi.
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