European markets to start the week broadly higher despite Iran-U.S. impasse

LONDON — European stocks are expected to start the new week on a broadly positive footing as investors keep a close eye on stalled Iran-U.S. peace talks and look ahead to central bank meetings.

The U.K.’s FTSE index is seen opening unchanged, Germany’s DAX up 0.3%, France’s CAC 40up 0.2% and Italy’s FTSE MIB up 0.26%, according to data from IG.

Market sentiment appears to be buoyant despite U.S. President Donald Trump on Saturday scrapping plans to send U.S. envoy Steve Witkoff and Jared Kushner to Islamabad in Pakistan for talks with Iran.

“Too much time wasted on traveling, too much work!” the president wrote in apost on Truth Social, adding: “Nobody knows who is in charge, including them. Also, we have all the cards; they have none! If they want to talk, all they have to do is call!!!”

Iran’s Foreign Ministry spokesman Esmaeil Baqaei said at the weekend that no meetings between Tehran and Washington were planned.

Global market attention will be focusing on central banks later this week, with the U.S. Federal Reserve, European Central Bank (ECB) and Bank of England (BOE) all due to hold pivotal meetings as the war upends inflation and growth expectations.

The Fed’s policy decision on Wednesday could mark Jerome Powell’s final meeting as chair before Kevin Warsh is expected to take over in May. The Department of Justice decided todrop its criminal probeinto Powell on Friday, causing Sen. Thom Tillis toend his block of Warsh’s confirmation.

The ECB and BOE both publish their latest monetary policy decisions on Thursday, with economists expecting the central banks to stand pat on their benchmark interest rates at their respective meetings this month, but will leave the door open to hikes later this year.

Investors on Monday will be keeping an eye on developments in the U.S. after a man armed with multiple weapons charged a security checkpoint at theWhite House Correspondents’ Dinnerin Washington, D.C. on Saturday, before being apprehended by U.S. Secret Service agents.

The suspected shooter was identified later Saturday as Cole Allen of Torrance, California. He is being held by authorities as they investigate the shooting.

Earnings come from Deutsche Börse on Monday and German GfK consumer confidence data will be published.

— CNBC’s Azhar Sukri, Yun Li and Lee Ying Shan contributed to this market report.