European Markets Open Mixed Amid US-Iran Peace Deal Uncertainty

European stock markets opened with mixed performances on Tuesday, as investors weighed the prospects of a peace agreement between the United States and Iran. The UK's FTSE 100 index was expected to open flat to lower, while Germany's DAX was set to rise by 0.5%. France's CAC 40 anticipated a 0.4% increase, and Italy's FTSE MIB was projected to open slightly below the flatline, according to data from IG.

In the Asia-Pacific region, markets experienced volatility overnight following reports that U.S. President Donald Trump aimed to avoid a prolonged conflict in the Middle East. The Wall Street Journal reported that Trump expressed willingness to end U.S. military hostilities against Iran even if the Strait of Hormuz remained largely closed. This development led to a slight uptick in U.S. stock futures and a reversal in oil prices during overnight trading.

Investors are also monitoring upcoming corporate earnings, with Hermes International scheduled to report on Tuesday. Additionally, key economic data releases are expected, including German retail sales, the final reading of the UK's GDP for the fourth quarter of 2025, and EU inflation data.