April 27 (Reuters) – European shares were muted on Monday in a week packed with central bank meetings, with a further stall in U.S.-Iran peace talks weighing on investor sentiment and sending oil prices higher.
U.S. President Donald Trump cancelled a trip by envoys to Iran war mediator Pakistan over the weekend, but sentiment was lifted after an Axios report that said Iran proposed reopening the Strait of Hormuz and postponing nuclear negotiations for later.
Trump has said Iran could telephone if it wants to negotiate an end to their two-month war, but added that Tehran cannot have a nuclear weapon.
With elevated oil prices adding to expectation that inflation may rise, markets will pay close attention to policy meetings at the European Central Bank and the Bank of England this week for any signs the central banks could move to hike rates.
The pan-European STOXX 600 was flat at 610.86 points as of 0703 GMT.
Among early movers, Nordex shares advanced 8.3% after the German onshore wind turbine maker posted core earnings and sales above expectations.
French auto parts supplier Forvia gained 3.5% after the firm to sell its car interiors business to Apollo Funds for 1.82 billion euros ($2.13 billion).
(Reporting by Twesha Dikshit; Editing by Mrigank Dhaniwala)
