European stocks rose on Tuesday as investors assessed geopolitical developments ahead of the expiration of a two-week ceasefire between the United States and Iran.
The European Stoxx 600 index rose by 0.2%, while Britain’s FTSE index climbed by 0.14%, Germany’s DAX index increased by 0.44%, while France’s CAC 40 index declined slightly.
Global markets are still closely monitoring the prospects for a resumption of peace talks or an escalation of tensions, amid uncertainty about the political path between Washington and Tehran.
The ceasefire, agreed upon for two weeks, is scheduled to end at 00:00 GMT, while US President Donald Trump indicated that the truce could end Wednesday evening Washington time.
In new remarks, Trump threatened to use massive military force against Iran if no agreement is reached, saying that many bombs will start to explode if the truce ends without a deal.
At a time when US-Iranian peace talks are characterized by a great deal of ambiguity and lack of clarity.
Associated British Foods (ABF) announced on Tuesday plans to spin off its Primark fashion business from its food division, in a move aimed at restructuring the group. The food division, to be known as FoodCo, will retain the name ABF, with George Weston taking over as CEO, while Ewen Tong has been appointed CEO of Primark. Both companies are slated to be listed on the London Stock Exchange.
The company's shares fell 4.8% following the release of its results, after it reported half-year revenues of £9.47 billion ($12.8 billion) for the period ending February 28. Adjusted operating profit also declined to £691 million, down 18% from £835 million in the same period last year, with revenues falling 2%, in what CEO George Weston described as a difficult first half.
Unemployment in Britain is declining
In a broader economic context, data from Britain’s Office for National Statistics showed the unemployment rate fell to 4.9% during the three months to February, a larger drop than expected compared to estimates that had indicated it would remain stable at 5.2%, while wage growth rose by 3.6% year-on-year.
On the global markets front, Asia-Pacific trading was mixed overnight, while US stock futures rose slightly on Tuesday morning, after the Nasdaq index ended a 13-session winning streak.
Investors are also awaiting the results of a number of companies, including Rio Tinto, Thales, ASM International, Beiersdorf, Associated British Foods, Moncler, and Vivendi.
