Markets watch U.S.-Iran talks as PPI, ADP and central banks speak

Markets focused on reports that negotiators have returned to the table for a second round of U.S.-Iran talks, which traders say has raised hopes of progress. Investors are also watching U.S. economic releases and a full day of central bank speakers.

European trading produced little that moved markets beyond Spain’s final consumer price index for March. The CPI print had limited impact as attention stayed on developments in the Middle East.

In the American session, the calendar includes the NFIB Small Business Optimism Index for March, the weekly ADP private payrolls estimate and the U.S. Producer Price Index. The NFIB reading is backward-looking and is generally not market-moving. Recent weekly ADP reports have pointed to a resilient labor market.

The PPI is expected to show persistent price pressures amid elevated geopolitical risk. Market participants may treat a hotter reading as confirmation of price trends already priced into markets rather than a new shock.

A long line of central bank officials is scheduled to speak through the day. Early European appearances include European Central Bank board member Olli Rehn at 04:00 ET and Bank of England policymaker Catherine Mann at 04:50 ET. Midday comments are set from ECB officials Abdallah Makhlouf and Philip Lane and Bank of England external member Ben Greene at 10:00 ET, followed by Bank of England Governor Andrew Bailey at 12:05 ET.

In the U.S. afternoon, Austan Goolsbee appears at 12:15 ET and Michael Barr at 12:45 ET, with additional Fed officials scheduled around 13:00 ET. ECB President Christine Lagarde is due at 17:00 ET.

Traders expect headlines from the U.S.-Iran talks to drive near-term market moves, with economic releases and central bank remarks filtered through any new developments in the negotiations. The day’s data will add detail on inflation and labor conditions, while officials’ public comments could prompt sharper reactions if they change expectations for policy paths.