European markets to open higher as Trump considers Iran peace proposal

The U.K.’s FTSE 100 index is seen opening a touch higher, with Germany’s DAX up 0.23%, France’s CAC 40 up 0.34% and Italy’s FTSE MIB 0.3% higher, according to data from IG.

Earnings come from Novartis, Airbus, BP and Barclays on Tuesday.

Investors will be assessing the news that U.S. President Donald Trump and his national security team discussed Iran’s proposal to reopen the Strait of Hormuz if the U.S. lifts its blockade and the war ends, White House press secretary Karoline Leavitt confirmed on Monday.

The proposal would postpone negotiations on Tehran’s nuclear ambitions for a later date, Axios and The Associated Press reported earlier in the session.

It’s unclear whether Trump, who has vowed not to lift the blockade until a deal with Iran is “100% complete,” entertained the reported offer to end the two-month-old war. Oil prices edged higher overnight as uncertainty lingered over the outcome of the war.

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 to drop its criminal probe into Powell on Friday, causing Sen. Thom Tillis to end 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. However, the central banks are expected to leave the door open to hikes later this year.

— CNBC’s Kevin Breuninger contributed to this market report.