FX.co ★ European Stocks Set for Flat Open

European equity markets were set for a muted open on Tuesday, as stalled diplomatic efforts to ease the US–Iran standoff and reopen the Strait of Hormuz continued to weigh on sentiment. US President Donald Trump and his national security team were reportedly unconvinced by Iran’s latest proposal, which postpones substantive nuclear talks to a later phase.

Investors are also positioning ahead of a heavy week for monetary policy decisions, with rate announcements due from the Federal Reserve, the European Central Bank, and the Bank of England. The Bank of Japan, by contrast, has already left its policy unchanged as it evaluates the economic impact of the Middle East conflict.

On the data front, attention will turn to labor market reports from Spain and France, producer price data from Italy, and Eurozone consumer inflation expectations.

In corporate news, earnings updates are due from Airbus, BP, Barclays, and Novartis, among others. In premarket trading, futures on the Euro Stoxx 50 and Stoxx 600 were broadly flat.