European markets show cautious optimism over Middle East ceasefire

Good morning from London, and welcome to CNBC's live blog covering European financial markets action on Wednesday, and the latest regional and global business news, data and earnings.

Futures data from IG suggests a positive start for European markets, with London's FTSE looking set to open unchanged at 8,764, Germany's DAX up 0.2% at 23,699, France's CAC 40 flat at 7,625 and Italy's FTSE MIB also up 0.3% at 39,673.

Global market sentiment rose Tuesday on bets that the ceasefire between Iran and Israel could last, after a shaky start to the truce that saw President Donald Trump lambast both countries for violations.

Traders are also digesting the latest comments from the U.S. Federal Reserve Chair Jerome Powell, who said Tuesday that the central bank was committed to keeping inflation in check, and would likely keep rates steady until there's more clarity on how trade tariffs might affect prices.

Powell said policymakers were “well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance.”

What to keep an eye on today

European markets will be keeping a close eye on events in the Middle East on Wednesday to see if a fragile ceasefire continues between Israel and Iran.

Meanwhile, the NATO summit in the Netherlands concludes Wednesday, with the alliance's 32 member states expected to issue a formal joint statement on hiking their defense spending target from 2% to 5% by 2035. President Donald Trump joined the summit Tuesday evening.

CNBC's Steve Sedgwick is in The Hague for the gathering and will be speaking to Finnish President Alexander Stubb and German Foreign Minister Johann Wadephul today.

On the data front, French consumer confidence and Spanish gross domestic product figures are due.