By Dow Jones Newswires Staff
Global stocks rose and oil pulled back below $100 on optimism that peace talks to end the Middle East conflict would resume.
The dollar hit a six-week low after both the U.S. and Iran signaled willingness to continue negotiations. Iran's Foreign Minister Abbas Araghchi told his French counterpart that progress was made in weekend negotiations, while President Trump said the "right people" in Iran want a peace deal.
U.S. futures pointed to gains at the market open after Asian and European stocks rallied, while U.S. Treasurys edged higher.
Investors watch for publication of the U.S. producer price index data and NFIB small-business index later Tuesday for early indicators of the war's impact on the real economy. Spring meetings of the International Monetary Fund and World Bank continue in Washington D.C. ahead of the IMF's latest forecast for the global economy due 9 a.m. Eastern time.
--In early European trading, Brent crude slipped 0.5% to $98.87 a barrel, while WTI was down 1.5% to $97.56 a barrel, though a U.S. blockade of the Strait of Hormuz keeps crude elevated. Prices remained up more than 60% year-to-date. The U.S. has begun blocking maritime traffic to and from Iranian ports in order to increase pressure on Tehran.
"The oil market no longer needs a worst-case escalation to justify higher pricing levels," analysts at ANZ said. "Tight balances alone are sufficient to sustain the price of Brent near or above recent threshold levels."
--U.S. stock futures were higher in early European trade. Futures tied to the S&P 500 and the Dow Jones Industrial Average were both up 0.1%, while the tech-heavy Nasdaq was 0.3% higher.
Earnings season continues apace, with J.P. Morgan, BlackRock and Johnson & Johnson among companies reporting ahead of U.S. market open.
--Asian equities rose while oil fell on Tuesday amid hopes for further U.S.-Iran peace talks, spurring appetite for risky assets. Japan's Nikkei Stock Average rose 2.4% and South Korea's Kospi was 2.7% higher. China's Shanghai Composite Index moved up 0.95%.
--European stocks largely rose in early trade. Basic materials and technology stocks gained as the Europe-wide Stoxx 600 rose 0.5%. The industrial-heavy DAX was 1% higher, boosted by automotive stocks and other energy-sensitive companies gain. London's FTSE 100 edged 0.1% higher--led by an increase for precious metals miner Fresnillo, which rose 3.2%--as oil majors BP and Shell held back gains for the index.
In Paris, the CAC 40 was up 0.3%, though LVMH shares fell 2.5% after the luxury bellwether missed revenue expectations. The FTSE MIB gained 0.5% as banks traded up, while the IBEX 35 was 0.8% higher on gains for energy-sensitive construction stocks and banks. The Dutch AEX rose 0.75% as semiconductor packaging company BE Semiconductor jumped 4.9%.
--The DXY dollar index fell to a six-week low of 98.114.
--U.S. Treasury yields edged lower, tracking a fall in oil prices. "Bond markets appear to be growing 'comfortably numb'," said Commerzbank's Christoph Rieger in a note. The two-year Treasury yield declined 1.1 basis points to 3.769%, while the 10-year yield was down 1.6 basis points at 4.280%.
Eurozone government bond yields fell, tracking U.S. Treasury yields lower. Bond supply will be significant in the eurozone on Tuesday. Dutch and German bond auctions are due, alongside France's syndication of a new June 2037-dated green OAT. The 10-year German Bund yield fell 3.2 basis points to 3.055%, while the 10-year French OAT yield dropped 4.3 basis points to 3.700%.
--Bitcoin rose 1.8% to $74,500.86. Bitcoin could stage a sharper rally if it breaks above $75,000 on strong volume, as a short squeeze can accelerate gains as traders buy back to cover positions, BTC Markets crypto analyst Rachael Lucas said.
--Gold prices rose to $4,800 a troy ounce, supported by a softer U.S. dollar and oil below $100 a barrel. In early European trading, New York gold futures rose 0.7% to $4,802.70 an ounce, while silver was up 2.1% to $77.25 an ounce.
Write to Barcelona Editors at barcelonaeditors@dowjones.com
(END) Dow Jones Newswires
04-14-26 0426ET
