By Dow Jones Newswires Staff
Oil pulled back from overnight gains as President Trump moved to assuage fears of escalating conflict in the Middle East though U.S. futures were shy of fresh record highs.
Treasury yields and the dollar fell back from overnight highs after the Lebanese embassy in the U.S. said it received confirmation of Hezbollah's acceptance of a U.S.-proposed partial ceasefire. A halt to Israel's expanded offensive into Lebanon is increasingly central to U.S. efforts to agree on a deal to reopen the Strait of Hormuz.
U.S. stock futures were in the red after Asian markets broadly slipped, though European stocks enjoyed a rare morning of outperformance as artificial-intelligence exuberance buoyed the continent.
Investors watch for U.S. job openings data for April ahead of the narrative-setting non-farm payrolls report due Friday.
--In early European trading, Brent crude and WTI futures were both down 0.9% to $94.14 and $91.31 a barrel, respectively, after closing Monday's session more than 4% higher. "Oil price direction continues to be dictated by Iran-related headlines amid considerable uncertainty over how negotiations between the U.S. and Iran are progressing," analysts at ING said.
--U.S. futures pointed lower in early European trade. Futures for the S&P 500 were down 0.1%, while futures for the Dow Jones Industrial Average fell 0.2%. The tech-heavy Nasdaq edged 0.2% lower premarket.
Alphabet shares were 1.7% lower premarket after the Google-owner announced plans to raise $80 billion to fund its AI ambitions. Cybersecurity company Palo Alto Networks is set to report earnings after market close.
--Asian stocks were mixed on Tuesday as investors mulled developments around peace talks in the Middle East alongside a volley of AI-related announcements. Nvidia unveiled the first prototypes for a new generation of personal laptops designed to run AI "agents" at the annual Computex event. The positive sentiment sent shares of its supply chain players higher. China's Shanghai Composite Index gained 0.4% while the tech-focused ChiNext Price Index rose 2.7%. Hong Kong's Hang Seng Index increased 2.45%. South Korea's Kospi eked out a 0.1% gain after declining for most of the session, while Japan's Nikkei Stock Average pared its earlier losses to close 0.3% lower.
--European stocks gained at market open, as defense stocks recouped some losses from the last session and technology companies continued to trade up. The Europe-wide Stoxx 600 rose 0.6%. Germany's industrial-heavy DAX was 0.8% higher, led by analog semiconductor manufacturer Infineon--up 4.3%. In Paris, the CAC 40 rose 0.8%, led by STMicroelectronics. The cross-listed semiconductor company gained 9% after doubling its expectations for data center revenue, helping to boost the Italian FTSE MIB up 1%. AI-related stocks also boosted the Dutch AEX--up 0.9%--as ASML rose 1%. Prosus jumped 11% after a report said Tencent--in which it holds a significant stake--is testing a new AI agent. London's FTSE 100 edged 0.25% higher as metals miners gain. Spain's IBEX 35 rose 0.75%.
--The dollar eased, with the DXY dollar index falling 0.1% to 99.087.
--U.S. Treasury yields fell in Asian trade, led by the long end of the curve. The 10-year Treasury yield fell 4.4 bps to 4.433% and the 30-year yield was down 3.8 bps to 4.953%, according to Tradeweb.
--Bitcoin fell to near two-month low in the wake of news Strategy sold the cryptocurrency for the first time since 2022 and amid ongoing Middle East tensions. Strategy said Monday it sold 32 bitcoin last week for about $2.5 million. "Sentiment toward bitcoin has soured quite rapidly," Trade Nation analyst David Morrison said in a note. Bitcoin fell 1.6% to as low as $69,961, LSEG data show.
--Gold prices rose in early trading, with New York futures rising 1.2% at $4,562.40 a troy ounce. "Gold continues to take its cues from the oil market given crude's influence on inflation expectations and, by extension, interest rates, bond yields and the dollar," analysts at Saxo Bank said.
Write to Barcelona Editors at barcelonaeditors@dowjones.com
(END) Dow Jones Newswires
06-02-26 0435ET
