A trader works on the floor of the American Stock Exchange (AMEX) at the New York Stock Exchange (NYSE) in New York, United States, Wednesday, May 6, 2026.
Michael Nagle | Bloomberg | Getty Images
LONDON — European stock markets are expected to open in negative territory as prospects for a quick resolution to the war between the United States and Iran appear increasingly distant.
Shortly after the opening bell, the Pan-European Assembly Stoxx 600 was down 1.2%, with all sectors and major exchanges firmly in negative territory.
Optimism over an imminent U.S.-Iran peace deal was met with reality Monday night when President Donald Trump said the current ceasefire is “on life support” after Tehran sent a “unacceptable” against Washington’s proposal to end the war.
The state of the month-old truce is “incredibly weak,” Trump told reporters in the Oval Office.
Oil price rose in response to the comments and, overnight, stock markets in the Asia-Pacific region marketed in mixed territory. Meanwhile, U.S. stock futures hovered near the flat line Monday evening as traders anxiously awaited the earnings release. April Consumer Price Index. Economists surveyed by Dow Jones expect inflation to have increased 3.7% from a year earlier.
A growing political crisis in the United Kingdom is also in focus in European markets on Tuesday, as more than 70 Labor Party lawmakers called on Prime Minister Keir Starmer to resign or set a timetable for his resignation. This follows the ruling party’s disastrous performance in last week’s local elections.
Prime Minister takes responsibility for poor election results and admitted Monday that he had “skeptics”. Starmer pledged to “deal with the big challenges” facing the country, but his speech failed to impress party members as several ministerial aides resigned on Monday.
Yields on British government bonds, known as gilts, extended gains Tuesday morning. Return on the benchmark index Gilding 10 years was last seen up nearly 10 basis points at 5.099%.
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THE Pound sterlingmeanwhile, was down 0.5% against the US dollar and lost 0.3% against the euro. British banking stocks were also sold off, with NatWestdown 4.6%, Lloydsdown 4.1%, and Barclaysdown 4%, leading to losses on the FTSE100.
Corporate profits also remain in focus, with Siemens EnergyMunich Re and Imperial Marks among the companies that inform their shareholders on Tuesday of their finances.
