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Live Markets: Europe before the bell: Optimistic markets

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EUROPE BEFORE THE BELL: OPTIMISTIC MARKETS

European stock futures are inching higher on Tuesday, as traders welcomed reports that Iran was considering joining peace talks in Pakistan later this week.

This week's negotiations had been thrown into doubt over the weekend after Iran said it was again halting traffic through the Strait of Hormuz after the U.S. seized an Iranian cargo ship.

"Both U.S. and Iran have reached a stage where they do not gain from a continuation of the war," writes Jefferies economist Mohit Kumar.

"Hence, our base case would be for an extension of the deadline and an agreement to continue talks further to resolve any sticking points."

The two-week ceasefire is due to expire later on Tuesday.

Euro STOXX 50 futures STXEc1 are up 0.3% after the index .STOXX50E fell 1.2% on Monday.

Futures on the DAX FDXc1, CAC FCEc1 and FTSE FFIc1 are up 0.2% to 0.3%.

Away from Iran, defence technology group Thales TCFP.PA could be in focus after it reported first-quarter sales well above analyst forecasts.

 Associated British Foods ABF.L confirmed it plans to split its Primark fashion chain from its food business through a demerger.

(Samuel Indyk)

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EARLIER ON LIVE MARKETS

MARKETS LONG FOR PEACE, PREPARE FOR WARSH CLICK HERE

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