European stocks flat amid US-Iran talks, Starmer resignation

The STOXX 600 was little changed as the DAX edged higher and France’s CAC 40 dipped, with tech stocks leading gains.reuters
VP Vance said US-Iran talks at Burgenstock set a “good foundation” for a final deal, with mediators announcing a 60-day roadmap and Iran agreeing to readmit IAEA inspectors.koreatimes
UK Prime Minister Keir Starmer announced his resignation Monday, adding political uncertainty as Brent crude fell on easing Strait of Hormuz tensions.npr

European Stocks Trade Flat as Investors Weigh US-Iran Talks, UK Political Turmoil

European equities traded in a narrow range on Monday as markets digested the outcome of the first round of US-Iran peace talks in Switzerland and absorbed the surprise resignation of British Prime Minister Keir Starmer.

The pan-European STOXX 600 was little changed in morning trading, with technology stocks leading gains while construction and materials lagged. Germany’s DAX edged up 0.3% while France’s CAC 40 dipped 0.2%, and the FTSE 100 was flat.reuters

US-Iran Talks Produce ‘Good Foundation’

Markets took a cautiously optimistic view of weekend negotiations at Switzerland’s Burgenstock resort, where US Vice President JD Vance and Iranian parliamentary speaker Mohammad Bagher Qalibaf concluded a marathon session of talks.koreatimes

“We laid a very good foundation for a successful final deal,” Vance told reporters on Monday. “The final deal is the house. We haven’t built the house, but we’ve laid a successful foundation to get to a good place for the American people.”newindianexpress

Mediators Qatar and Pakistan said the two sides agreed on a “roadmap towards reaching a final deal within 60 days,” with technical talks continuing in Switzerland this week. A de-confliction cell was established to address fighting in Lebanon, and Iran agreed to invite International Atomic Energy Agency inspectors back into the country, which Vance called “a major milestone”.reuters

Brent crude prices fell as the agreement included a communication channel for the Strait of Hormuz, a critical global oil shipping route that Tehran had intermittently disrupted.reuters

UK Political Shock Adds Uncertainty

Sentiment was further complicated by Starmer’s announcement Monday morning that he would resign as Labour leader and prime minister, yielding to pressure from within his party barely two years after winning a landslide election. He said he would remain as caretaker until a successor is chosen, with nominations to open on July 9.npr

Andy Burnham, the former mayor of Greater Manchester who recently won a special election, is considered a frontrunner for the Labour leadership.nytimes

Cautious Outlook

Asian markets had responded more positively to the Switzerland talks, with Japan’s Nikkei 225 gaining 1.5%. But US futures pointed to a flat open, and analysts noted that European markets lacked conviction given unresolved questions around Iran’s nuclear program, frozen assets, and the conflict in Lebanon.aljazeera