European stocks rise, oil falls, markets cheered by Trump talk of Iran negotiation

By Elizabeth Howcroft

LONDON, March 25 (Reuters) - European banal indexes roseate and lipid prices were down connected the time connected Wednesday, aft markets got a boost from reports that the U.S. is seeking a month-long ceasefire with Iran, ‌even though Iran rejected the thought of negotiations.

U.S. President Donald Trump told reporters connected Tuesday that the U.S. was making ‌progress successful negotiating an extremity to the war, raising hopes that lipid could commencement being exported from the Persian Gulf again. Traders were cheered by reports of ​the ceasefire connection and that the U.S. had sent Iran a 15-point program for discussion.

Iran denied that nonstop talks had taken spot and an Iranian subject spokesperson said the United States is negotiating with itself, according to authorities media.

Still, markets took a affirmative turn, making humble gains during Asian trading.

European banal indexes rose, with the STOXX 600 up 1.4% connected the time astatine 1036 GMT - a rebound which did ‌little to antagonistic its wide diminution truthful acold ⁠in March, leaving it down 7.3% connected the month. London's FTSE 100 was up 1.1% connected the day.

"The temper is connected the affirmative side," said Amelie Derambure, elder multi-asset manager astatine Amundi. "(The) marketplace is trading ⁠now the thought that bid talks oregon a ceasefire could beryllium connected the way."

Derambure said that traders were positioning themselves to debar missing retired connected a imaginable "relief rally", erstwhile markets emergence connected affirmative news, though she added that much convincing quality volition beryllium needed for the determination to ​be ​sustained.

Some analysts cautioned against expecting the warfare to extremity soon.

"It is astir apt ​too aboriginal to expect immoderate large driblet successful vigor ‌prices oregon a overmuch softer dollar this week," ING's planetary caput of markets Chris Turner wrote successful a probe note.

OIL EASES, BOND YIELDS FALL

Oil prices, which person risen sharply since the U.S.-Israeli warfare connected Iran began, eased slightly, with Brent crude futures down 5.2% astatine $99.01 a barrel, and U.S. West Texas Intermediate crude futures down 5.1% astatine $87.62 a barrel.

Iran has said that "non-hostile vessels" whitethorn transverse the Strait of Hormuz if they coordinate with Iranian authorities, but the waterway, which typically carries astir one-fifth of the world's state and crude supply, remains efficaciously closed.

European ‌government enslaved yields fell, successful a determination led by Italian bonds, which had ​been peculiarly hard deed since the warfare started owed to Italy's dependence connected ​fossil substance imports.

The benchmark 10-year German output was astatine ​2.9724%. The euro was down by 0.1% astatine $1.1598.