A trader works on the floor of the American Stock Exchange (AMEX) at the New York Stock Exchange (NYSE) in New York, US, Wednesday, May 6, 2026.
Michael Nagle Bloomberg | Getty Images
LONDON – European stocks are expected to open on the negative side as the chances of a quick resolution to the US-Iran war seem remote.
Immediately after the opening bell, the pan-European The Stoxx 600 was 1.2% lower, with all sectors and major stocks firmly in negative territory.
Hopes for an imminent US-Iran peace deal were seen as a reality on Monday when President Donald Trump said the ongoing ceasefire was “based on life” after Tehran sent an “unacceptable” response to Washington’s proposal to end the war.
The state of the month-long deal is “incredibly weak,” Trump told reporters in the Oval Office.
Oil prices rose in response to the comments and, overnight, bourses in the Asia-Pacific region traded in mixed territory. Meanwhile, US stock futures hovered near a flatline on Monday night as traders looked ahead to the release of April consumer price index readings. Economists polled by Dow Jones expect inflation to gain 3.7% from a year ago.
The growing political crisis in the UK focused on European markets on Tuesday as more than 70 Labor Party MPs have now called on Prime Minister Keir Starmer to resign or set a timetable for his resignation. This comes after the ruling party’s poor performance in the local council elections last week.
The prime minister, who has held himself accountable for the negative election results, admitted on Monday that he had “doubts”. Starmer pledged to “tackle the biggest challenges” facing the country, but the speech failed to impress party insiders as several aides resigned on Monday.
Yields on UK government bonds, known as gilts, extended gains on Tuesday morning. Yield on the benchmark 10 years it was last seen about 10 points higher at 5.099%.
UK for 10 years
I British poundon the other hand, it decreased by 0.5% against the US dollar, and decreased by 0.3% against the euro. British bank stocks also sold, with Natwestdown 4.6%, Lloydsdown 4.1%, too Barclaysdown 4%, resulting in a loss FTSE 100.
How companies report earnings this Tuesday
Business benefits also stay focused, with Siemens EnergyMunich Re and Imperial Brands among the firms that updated shareholders on their earnings on Tuesday.
In its first-quarter earnings release, German biotech giant Bayer reported a 9% jump in operating profit, which came in at a stronger-than-expected 4.5 billion euros ($5.3 billion) when adjusted for special items. It also reiterated its full-year guidance.
Bayer went to the US Supreme Court late last month in an attempt to end thousands of lawsuits against its herbicide Roundup. The company acquired Roundup maker Monsanto for $63 billion in 2018 and has faced years of litigation since the deal was finalized, amid allegations that glyphosate, a herbicide, has caused health problems, including cancer.
Bayer is awaiting a decision on its High Court case in June. In its earnings report on Tuesday, the company said the Roundup lawsuit remains a “legal risk,” noting that Monsanto had agreed to a major settlement regarding the claims as early as 2026, including a proposed US-wide class-action settlement of up to $7.25 billion over 21 years.
Plaintiffs have until June 4 to opt out of the settlement, with Monsanto reserving the right to terminate class payments if the opt-out amount is “too high.”
Elsewhere, London-listed telecoms giant Vodafone reported its full-year earnings on Tuesday morning. Revenue jumped 8% year-over-year to 40.5 billion euros, slightly below the consensus estimate compiled by LSEG.
The growth, which Vodafone attributed to strong service revenue and the integration of Britain’s Third mobile network, saw the company turn to an operating profit of 2.8 billion euros after posting a loss of 0.4 billion euros last year. Analysts were expecting a profit of around 2.1 billion euros, according to LSEG.
