(Il Sole 24 Ore Radiocor) - Milano, 21 apr - European shares closed lower as markets reacted to prospects for US-Iran peace talks a day before a temporary ceasefire is due to expire.

US president Donald Trump said he believed the US was 'going to end up with a great deal' with Iran to end the war but raised the prospect of new bombings if a deal is not reached before the end of the ceasefire on Wednesday.

Iran's parliamentary speaker, Mohammad Bagher Ghalibaf, meanwhile said Iran did not accept negotiations 'under the shadow of threats', and added Tehran had 'new cards on the battlefield.' Elsewhere Trump's nominee for the chair of the Federal Reserve, Kevin Warsh, prepares to face the Senate later today for confirmation of his nomination. Trump told CNBC in an interview today he would be disappointed if Warsh did not cut rates quickly.

On the data front, economic sentiment in Germany continued to deteriorate in April, dropping to -17.2 points from -0.5 points in March, according to the ZEW institute. ZEW president Achim Wambach noted that "economic expectations are slipping into negative territory," as concerns over long-term energy shortages discourage investment.

The London FTSE 100 closed down 1.05% at 10,498.09 points, the Frankfurt DAX fell 0.87% at 24,231.41 points, the Paris CAC 40 lost 1.13% at 8,235.72 points, while in Milan the FTSE MIB shed 0.63% at 47,903.29 points, and in Madrid the IBEX 35.

closed 0.75% lower at 18,124.25 points.

(RADIOCOR) 21-04-26 17:59:39 (0674) 5 NNNN