Global Markets Hold Breath Amid U.S.-Iran Talks and Inflation Surges

With parts of Asia closed for Lunar New Year, global markets focus on U.S.-Iran negotiations to ease tensions. In Europe, traders anticipate key economic data, including inflation figures and interest rate decisions, impacting financial markets. Early trades show declines in European indices and U.S. stock futures.

As Asia observes the Lunar New Year, investors worldwide shift their gaze to the Middle East, where diplomatic efforts between the United States and Iran could de-escalate existing geopolitical tensions. With anticipation building ahead of talks in Geneva, oil prices climbed while gold prices receded.

Amid minimal activity due to holidays in major Asian markets, financial traders await key economic indicators, including the Federal Reserve's minutes and upcoming U.S. GDP rates. Additionally, Britain, Canada, and Japan prepare to release crucial inflation data amid rising rate hikes.

European markets opened lower, with the Euro Stoxx 50, German DAX, and FTSE futures all in decline. U.S. stock futures, including the S&P 500 e-minis, also faced a downturn. Investors brace for earnings reports and financial data that could shape market movements in the coming days.