IRAN PEACE IS STALLED OVER NUCLEAR BOMBS – However, markets are banking on an Iran deal, says Frankfurt financial analyst
European shares were muted today, in a week packed with central bank meetings, with a further stall in U.S.-Iran peace talks weighing on investor sentiment and sending oil prices higher.
U.S. President Donald Trump cancelled a trip by envoys to Iran war mediator Pakistan over the weekend, but sentiment was lifted after an Axios report that said Iran proposed reopening the Strait of Hormuz and postponing nuclear negotiations for later.
Frankfurt financial analyst Ascan Iredi of “Plutos” portfolio management told Reuters markets were banking on an Iran deal.
“I believe there will be a resolution in the end and that is, after all, what is already being celebrated on the stock markets,” said Iredi.
Trump has said Iran could telephone if it wants to negotiate an end to their two-month war, but added that Tehran cannot have a nuclear weapon.
With elevated oil prices adding to expectation that inflation may rise, markets will pay close attention to policy meetings at the European Central Bank and the Bank of England this week for any signs the central banks could move to hike rates.
