As tensions between the United States and Iran continue to simmer, both sides have agreed to resume talks in an effort to find a peaceful resolution. The development comes after US President Trump announced a 10-day pause in planned strikes on energy plants, at the request of the Iranian government. While the White House has indicated that negotiations are progressing well, Tehran is pushing back against US demands and seeking concessions before any talks can begin.

According to sources cited by The Wall Street Journal, Iran is seeking a dialing back of US demands in the 15-point peace plan before starting any negotiations. The Iranian government has expressed openness to talks, but deems the US proposals excessive. Meanwhile, mediators are pressuring Tehran to agree to a meeting with Washington in the coming days, as reported by Axios.

In a separate development, the US is considering sending up to 10,000 additional ground troops to the Middle East, according to The Wall Street Journal. This move has raised concerns about the potential escalation of conflict in the region and the impact on global economic stability.

Despite these tensions, Asian stocks were cautious but off worst levels, with European equity futures indicating a positive cash market open. Investors are keeping a close eye on upcoming economic data releases, including UK Retail Sales (Feb), Spanish CPI Prelim. (Mar), University of Michigan Consumer Sentiment Final (Mar), and ECB Consumer Inflation Expectations. Central bank speakers, including Fed’s Barkin, Daly & Paulson, ECB’s Schnabel, will also be in the spotlight.

In addition to these developments, Fitch Ratings has assigned Switzerland a stable outlook, while Moody’s has placed Italy and Spain under review for downgrade. Scope Ratings has also issued a negative outlook on the EU. These credit rating moves are likely to have significant implications for the global economy and financial markets in the coming months.