By Dow Jones Newswires Staff
Brent crude oil pushed back above $100 a barrel and U.S. Treasury yields rose as the U.S. and Iran looked no closer to a resumption of peace talks.
Investors remain on edge, with the two sides locked in a standoff. The U.S. continued a blockade of Iranian-linked vessels, while Iran attacked three ships attempting to transit the Strait of Hormuz.
Asian stocks fell back from intraday highs as tensions hit investor risk appetite, and U.S. stock futures point lower after closing at records Wednesday. European stocks were mostly lower in early trade, but pared some premarket losses.
Investors watch for April Purchasing Managers' Index flash estimates from the U.S. due for release later Thursday, following some signs of strain caused by the Middle East war in those from Asia and Europe.
--In early European trading, Brent crude oil gained 1.3% to $103.26 a barrel, while WTI was up 1.5% to $94.32 a barrel. Regional mediators are trying to get the diplomatic process back on track, but little progress has been achieved so far. "With little progress on diplomacy and major geopolitical issues still unresolved, markets are increasingly pricing in prolonged supply disruptions rather than temporary headline-driven volatility," said Soojin Kim, analyst at MUFG.
--Futures for the S&P 500 and Nasdaq both pointed lower after the indexes hit fresh records Wednesday. The S&P was set to fall 0.4% after notching its eighth record close of the year, while futures for the tech-heavy Nasdaq pointed 0.3% lower. Futures tied to the Dow Jones Industrial Average fell 0.5%.
Tesla shares were flat premarket after the company announced earnings after the close Wednesday. Texas Instruments shares jumped 11% premarket after the semiconductor company posted higher profit and revenue for the fiscal first quarter.
--Asian stocks mostly gave up early gains as Middle East tensions simmer and investors await further news on potential U.S.-Iran talks. Japan's Nikkei Stock Average briefly surged above the 60000 threshold for the first time and then gave up its gains to end 0.75% lower. South Korea's Kospi ended 0.9% higher after gaining over 2% in early trade.
--European blue-chip indexes were largely lower as investors digested a raft of corporate announcements. London's FTSE 100 fell 0.55% as precious metals miners slid, while supermarket Sainsbury's fell 5.35% after earnings. The German DAX fell 0.2% as energy-sensitive industrials slipped. France's CAC 40 gained 0.4%, boosted by an 8.6% jump for cosmetics group L'Oreal after posting expectation-beating sales. The Italian FTSE MIB was down 0.2%, while the Spanish IBEX 35 lost 0.8% as banks in the index faltered.
--The DXY dollar index rose 0.1% to 98.643 after reaching a one-week high of 98.737 overnight.
--U.S. Treasury yields rose across maturities in Asian trade. "Markets open on a weak foot with headlines from a locked-in standoff over the Strait of Hormuz dominating the news," Danske Bank's Joel Rossier said in a note. Two-year Treasury yields were up 1.6 basis points at 3.809%, while the 10-year yield rose 2.7 basis points to 4.320%. Bond prices and yields move in opposite directions.
Eurozone government bond yields also rose. Bond investors remain concerned about the inflationary impact of the Middle East war. The 10-year German Bund yield rises 4 basis points to 3.037%, the 10-year French OAT yield is up 5 basis points at 3.695%, and the 10-year Italian BTP yield rises 5.4 basis points to 3.825%, according to Tradeweb.
--Bitcoin turned lower after reaching an 11-week high on Wednesday. The cryptocurrency fell 0.3% to $78,225 after reaching a high of $79,480 on Wednesday, LSEG data show
--Gold prices fell in early European trading. "Persistent inflation risks from the prolonged energy shock have reinforced expectations that central banks may keep interest rates elevated for longer," said Soojin Kim from MUFG. "As a result, gold continues to face headwinds." A higher interest-rate environment typically dampens the appeal of nonyielding assets like gold. Futures in New York were down 0.6% to $4,724.30 a troy ounce. Meanwhile, silver was down 2.6% to $75.93 an ounce and platinum fell 2.2% to $2,041.40 an ounce.
Write to Barcelona Editors at barcelonaeditors@dowjones.com
(END) Dow Jones Newswires
04-23-26 0443ET
