Clouds over US-Iran negotiations dampen Wall Street (-0.59%), Wti above $90

Attention is also focused on the hearing of Kevin Warsh, as part of his confirmation process to lead the Federal Reserve. Warsh called it a 'fatal mistake' for the Fed to let inflation rise and said the central bank 'is sticking to its forecasts longer than it should', which is why 'policy change is needed'.

Turning to equities, Heavyweight defence stocks, with Avio cancelling its gains and closing at -0.05% while, according to Giulio Ranzo, the company's CEO, told Il Sole 24 Ore, it is preparing to renew its management at the shareholders' meeting on 28 April and aims to consolidate in the US market. Sales were also reported on Fincantieri (-2.9%) and Leonardo (-4.87%), which was also affected by Jefferies' recommendation cut. St. St. (+0.87%) did well as the tech sector led gains in the Asian market. Purchases were also made on Tenaris, which finished ahead at +1.7%, and Eni (+0.45%), with Brent crude oil rising again. Outside the main basket,Bf flew (+12%) and matched the price of Federico Vecchioni and Sergio Dompè's voluntary IPO at EUR 5 per share.

In the currency, the euro lost ground and was worth $1.1748. The single currency also trades at 187.25 yen, while the dollar/yen cross is at 159.4. Oil prices are back on the rise, with Brent  oil trading at $98.2 a barrel, up more than 2%, and Wti trading at $90. Gas also rose again to EUR 42 per megawatt hour (+4.2%).

"Commodity prices continue to reflect an environment of uncertainty, while equity markets are moving into more favourable scenarios, with earnings likely to be the main driver. With the ceasefire deadline looming and a lack of clarity on the upcoming negotiations, we are likely to see increased volatility," comments Anthony Willis, investment manager at Columbia Threadneedle Investments.

The BTp-Bund spread closed higher. At the end of the session, the yield differential between the benchmark ten-year BTp and the German Bund of the same duration stood at 76 basis points, up from 74 points at the close of the previous day. Also on the rise was the yield on the benchmark ten-year BTp, which settled at 3.77%, down from 3.72% at the close of the previous day.