By Dow Jones Newswires Staff


Moves in global markets were muted as investors weighed competing signals around the Middle East conflict ahead of crucial negotiations between the U.S. and Iran over the weekend.

Front-month Brent crude oil held below $100 a barrel even as President Trump criticized Iran's failure to open the Strait of Hormuz to oil transit. Israeli strikes on Lebanon continued to threaten the U.S. and Iran's fragile cease-fire, though the two countries are set for peace talks next week.

U.S. stock futures edged slightly lower, following muted opening trade in Europe. The dollar and U.S. Treasury yields both lifted slightly. Investors now await U.S. consumer price index data due later on Friday after Thursday's personal consumption expenditures print was in line with market expectations.


In early European trading, Brent crude rose 1% to $96.85 a barrel, while WTI was up 0.8% to $98.65 a barrel. Traders will focus on U.S.-Iran negotiations over the weekend. "What gets agreed there, specifically whether a workable vessel transit protocol emerges, is the single variable that determines whether this backlog starts to clear," said Emmanuel Belostrino, head of global crude and geopolitical market data at Kpler.

An Iranian attack on the East-West pipeline--currently Saudi Arabia's primary export outlet--led to a loss of around 700,000 barrels a day in throughput.


--In the U.S., stocks nudged slightly lower premarket. Futures for the S&P 500 were down 0.1% as the index looked to gain ground for an eighth consecutive session. Futures tied to the Dow Jones Industrial Average declined 0.2%, while the Nasdaq slipped 0.1%.


--Asian equities rose broadly, as the fragile cease-fire brought relief to investors. Japan's Nikkei Stock Average gained 1.58% and South Korea's Kospi climbed 1.4%. Hong Kong's Hang Seng Index was 0.5% higher and China's Shanghai Composite Index advanced 0.5%.

Tech shares rose across Asia as risk-on sentiment resumed, led by chip stocks. SK Hynix and Samsung Electronics were up 2.9% and 1%, respectively, and TSMC gained 2.3%.


--European equity indexes largely edged higher in cautious early trade. London's FTSE 100 nudged 0.05% higher, with house builders gaining even as consumer-sensitive stocks slipped. The French CAC 40 and German DAX both traded flat as gains for luxury and technology stocks were countered by a slide in energy and materials stocks. Luxury goods boosted the FTSE MIB, which gained 0.1% after Brunello Cucinelli jumped 5.4% following a business performance update. The Spanish IBEX 35 was flat as energy slid and banks gained.


--The dollar rose slightly as oil prices edged higher. Higher oil prices supported the dollar as the U.S. is a net oil exporter. The DXY dollar index climbed 0.1% to 98.961


--U.S. Treasury yields were marginally higher in Asian trade. "Amid this fragile equilibrium, investors are likely to remain cautious and opportunistic," Societe Generale rates strategists said in a note. U.S. rates markets were moving from acute escalation risk toward a cautious holding pattern after the U.S.-Iran cease-fire, but confidence in durability remains limited, the strategists said. The two-year Treasury yield rose 1 basis point to 3.791%; the 10-year yield was up 0.6 bp at 4.298% and the 30-year yield edged up 0.3 bp to 4.900%, according to Tradeweb.

Eurozone government bond yields edged lower in opening trade. "Cautious optimism may prevail today as markets are contemplating prospects for successful cease-fire negotiations over the weekend," Commerzbank's Hauke Siemssen said in a note. Issuance will come from Italy, while France and Spain will announce details of their auctions for next Thursday. The 10-year German Bund yield edged 1 basis point lower to 3.009%.


--Bitcoin fell, reversing much of its overnight gains. The cryptocurrency dropped 0.8% to $71,820 after reaching a three-week high of $73,067 overnight, LSEG data show.


--Gold prices fell, though the metal remains on track for a weekly gain of 2% as investors await greater clarity from U.S.-Iran talks over the weekend. Futures in New York were down 0.9% to $4,775.20 a troy ounce.


Write to Barcelona Editors at barcelonaeditors@dowjones.com


(END) Dow Jones Newswires

04-10-26 0443ET