Stocks, Treasuries Edge Higher as Oil Eases - Europe Market Wrap
US stocks and Treasuries edged higher as oil prices eased, with investors holding back ahead of the week’s first labor-market data and a series of artificial-intelligence events. S&P 500 futures rose 0.1% after the index erased its monthly gains in the previous session. The cautious tone was also evident in bonds, with the 10-year Treasury yield holding just below a 19-year high. The dollar was little changed, while Brent crude slipped as traders weighed the resumption of flows through a key Saudi Arabian pipeline against a lack of progress in US-Iran talks. Markets are stabilizing after a volatile start to the week, when sharp swings in oil prices triggered selling across stocks and bonds. Among the potential catalysts, traders will focus on a lunch meeting between President Donald Trump and industry leaders on AI safety risks. A busy run of economic data begins with the August job openings report, while remarks from six Federal Reserve officials will be scrutinized for clues on the interest-rate outlook. Markets are currently pricing as many as four rate hikes over the next 12 months. As Anthropic CEO Dario Amodei and other industry leaders prepare to meet Trump, investors will a
US stocks and Treasuries edged higher as oil prices eased, with investors holding back ahead of the week’s first labor-market data and a series of artificial-intelligence events. 1% after the index erased its monthly gains in the previous session. The cautious tone was also evident in bonds, with the 10-year Treasury yield holding just below a 19-year high. The dollar was little changed, while Brent crude slipped as traders weighed the resumption of flows through a key Saudi Arabian pipeline against a lack of progress in US-Iran talks.
Markets are stabilizing after a volatile start to the week, when sharp swings in oil prices triggered selling across stocks and bonds. Among the potential catalysts, traders will focus on a lunch meeting between President Donald Trump and industry leaders on AI safety risks. A busy run of economic data begins with the August job openings report, while remarks from six Federal Reserve officials will be scrutinized for clues on the interest-rate outlook. Markets are currently pricing as many as four rate hikes over the next 12 months.
As Anthropic CEO Dario Amodei and other industry leaders prepare to meet Trump, investors will also listen for comments from OpenAI CEO Sam Altman on AI safety at the company’s annual developer conference. OpenAI is reportedly holding back a version of its Astra model while it strengthens safeguards. The inflation backdrop was underscored Tuesday when Australia’s central bank raised borrowing costs to their highest level in about 15 years. In Spain, inflation moved further above the European Central Bank’s 2% target, adding to expectations for higher euro-area rates.
UK gilts outperformed European peers as markets awaited Prime Minister Andy Burnham’s address to the Labour Party conference in Liverpool. Officials expect Burnham could signal an intention to begin discussions on reforming the state pension system to help fund social care.