European stocks to open higher as U.S.-Iran ceasefire deadline looms

LONDON — European stocks are expected to open broadly higher on Tuesday as investors gauge developments ahead of the expiry deadline for the two-week ceasefire between the U.S. and Iran.

The U.K.’s FTSE 100 index is seen opening slightly higher, with Germany’s DAX up 0.24%, France’s CAC 40 up 0.2% and Italy’s FTSE MIB up 0.6%, according to data from IG.

Global markets are still assessing prospects for peace talks and the possibility of escalation.

The two-week ceasefire agreed between the U.S. and Iran was set to expire at 12:00 a.m. GMT (Tuesday, 08:00 p.m. ET), although U.S. President Donald Trump told Bloomberg on Monday that the truce would end “Wednesday evening Washington time.”

Trump again threatened Iran with overwhelming military force on Monday, saying “lots of bombs [will] start going off” if no deal is reached before the shaky ceasefire expires.

The latest threat, made in a phone call with a PBS News reporter, came as the status of fresh U.S.-Iran peace talks have grown increasingly opaque.

Overnight, Asia-Pacific markets were mixed, while U.S. stock futures inched higher early Tuesday after the Nasdaq Composite snapped a 13-day win streak during the regular session.

Earnings reports come from Rio Tinto, Thales, ASM International, Beiersdorf, Associated British Foods, Moncler and Vivendi.

— CNBC’ Kevin Breuninger contributed to this market report.