MARKET WRAPS
Stocks:
Shares in Europe were rising Tuesday even as a flare-up of violence in the Middle East tested a shaky cease-fire .
Front-month Brent crude eased but remained elevated at over $112.
Technology and consumer stocks led the gains on the Stoxx 600. The FTSE 100 was the only major European index in the red during early trade, weighed by financials.
The resilience in equity markets held this morning despite the U.S. and Iran both using military force Monday in the worst fighting since Trump declared a cease-fire in early April .
Pepperstone said as long as the White House and Tehran are engaged in peace talks, "that should be enough to keep risk appetite underpinned."
On the trade front, the EU's top trade negotiator Maros Sefcovic is expected to meet with his U.S. counterpart , Jamieson Greer, today. European officials are still reeling from Trump's pledge to raise tariffs on cars from the EU.
Speeches are due later from the European Central Bank's Christine Lagarde and Philip Lane in Germany. Federal Reserve Governor Michael Barr speaks in the U.K.
Stocks to Watch
HSBC reported lackluster results for the first quarter. Credit charges and higher-than-expected costs offset better-than-anticipated revenue, Keefe, Bruyette & Woods said. Shares in London fell 5.4%.
Anheuser-Busch InBev can eye higher shares ahead, Jefferies said after the brewer swung back to sales growth in the year's first quarter. The stock rose 6.6%.
GSK is due to provide key updates on two late-stage drug candidates and on a review of its portfolio over the next three months as its new CEO seeks to win over investors.
"Post a great start by the new CEO, we think three milestones over the next three months should increase investors' conviction in GSK's mid to long term prospects," Bernstein said.
U.S. Markets:
Stock futures were higher after skirmishes in the Middle East had sent indexes lower in the previous session.
First-quarter earnings season rolls on with Advanced Micro Devices and Pfizer due to report.
Forex:
The dollar rose as fighting in the Middle East flared once again. The greenback is gaining from safe-haven flows and because the U.S. is a net oil exporter.
Sterling edged higher but gains were likely to be capped given the rise in dollar due to increased demand for safe-haven assets, Monex Europe said.
Markets will also focus on the outcome of the U.K. local elections due Thursday amid concerns about a possible leadership challenge to Prime Minister Keir Starmer .
The Swiss franc rose slightly after data showed Swiss inflation jumped in April.
Bonds:
Treasury yields fell slightly in European trade as oil prices turned lower, albeit remaining at elevated levels.
However, renewed escalation in the Middle East keeps market participants nervous and inflation concerns alive.
Eurozone government bond yields were stable in early trade.
Moves were muted even after Iran launched missiles and drones on the U.A.E. as the U.S. aimed to move ahead with "Project Freedom" to unblock the Strait of Hormuz.
Danske Bank said an escalation in the Strait of Hormuz conflict has caused global bond yields to rise and risks prevail for further increases .
"The short-term risk is that the yields will grind higher unless some form of deal is reached between Iran and U.S."
LBBW said gross government bond issuance by the eurozone's 11 largest issuers is expected at EUR130 billion in May, higher than the same month last year.
Emerging market bonds have proven resilient since the start of the conflict in the Middle East, Generali Investments noted.
Energy:
Oil prices eased but remained elevated after Iran fired at American warships and disrupted a U.S. effort to revive shipping in the Strait of Hormuz.
"The flare-up in tension is likely to halt any moves by ship owners to consider transiting the Strait," ANZ said.
The U.A.E. confirmed a strike sparked a fire at the oil hub of Fujairah, threatening around 1.9 million barrels a day that the country has been exporting via the route since the effective closure of Hormuz.
Metals:
Gold prices rebounded but gains were capped by escalating hostilities in the Middle East, with elevated oil prices driving inflation concerns.
"Investors stepped in to buy after a recent selloff triggered by renewed Middle East tensions," MUFG said.
Still, "the surge in oil prices and rising US Treasury yields, driven by expectations that the Fed may need to raise interest rates, continue to weigh on non-yielding gold ."
Silver futures and platinum were both up.
State Street Investment Management said gold could rise as long as consensus and Fed forward guidance point toward future easing .
EMEA HEADLINES
HSBC Posts Flat Quarterly Net Profit, Missing Consensus
HSBC Holdings' first-quarter net profit was largely flat, missing analysts' estimates, as higher credit charges related to exposure with a U.K. financial firm and the Middle East conflict offset the strength in its Hong Kong, U.K. and wealth businesses.
The London-based bank said Tuesday that it booked $1.30 billion in expected credit losses and other impairment charges in the first quarter, partly due to a roughly $300 million increase in allowances to reflect heightened uncertainty in the economic outlook following the onset of the war.
Bud Brewer AB InBev Says Sales Are Rebounding, Eyes Fresh Lift From Summer's World Cup
Budweiser maker Anheuser-Busch InBev booked its first sales-volumes growth in three years, adding to signs of a rebound in the beer industry and lifting the group's share price.
The world's largest brewer, which counts Stella Artois and Corona alongside Bud in its stable of brands, posted a 0.8% organic increase in total volumes over the first three months of the year, ending a period of sliding volumes dating to mid-2023 as drinkers cut back against a backdrop of high inflation and growing health trends.
UniCredit Lifts Profit Outlook Amid Looming Commerzbank Bid
UniCredit raised its annual profit forecast and reported higher first-quarter earnings, as it gears up to launch a takeover bid for Germany's Commerzbank.
The bank said Tuesday that early progress in its transformation program supported its improved profit expectations for the full year. It expects a net profit equal to or above 11 billion euros, equivalent to $12.86 billion, against its previous forecast of around 11 billion euros.
EQT Raises Takeover Bid For Intertek Again
Swedish buyout group EQT said it submitted an improved takeover proposal for Intertek, valuing the company at 8.93 billion pounds ($12.08 billion).
The private-equity company on Tuesday said that under the increased proposal, Intertek shareholders would receive 58 pounds in cash for each Intertek share.
Audi Sticks to Guidance But Warns of Impact From Geopolitical, Economic Turbulence
Audi backed full-year guidance as it pushes ahead with cost cuts, but cautioned that the turbulent geopolitical and economic environment is having a noticeable impact on its business.
"Certainties of the past-such as stable sales markets and predictable conditions-no longer apply," Chief Financial Officer Juergen Rittersberger said.
Volvo Car Posts 10% Drop in Sales
Volvo Car posted a 10% fall in quarterly sales as competition in China ramps up and U.S. consumer sentiment remains weak.
The Swedish carmaker said Tuesday that it sold 162,864 cars in the three months through April. Sales in China remain weak after being hit by competition from domestic manufacturers and a challenging macroeconomic environment, it said. Record low customer sentiment in the U.S. also hurt sales.
GLOBAL NEWS
Attacks on U.S. Warships in Strait Test Trump's Desire to End Iran War
President Trump's desire to end the Iran war is being put to the test after Tehran fired at American warships on Monday and violently disrupted a U.S. effort to revive shipping in the Strait of Hormuz.
U.S. officials say Trump for days has toggled between two competing impulses: severely punishing Iran for failing to abandon its nuclear work, and avoiding a significant escalation that could draw the U.S. deeper into a Middle East conflict. Trump wants to avoid a fresh bombing campaign, officials say, preferring a negotiated end to Tehran's nuclear advancements and the weekslong war that has raised gas prices and hurt the global economy.
Swiss Inflation Climbs to Highest Since 2024 as Energy Prices Surge
Swiss inflation jumped in April as the Iran war sent imported energy costs climbing.
Consumer prices were up 0.6% on year, higher than the 0.3% inflation rate in March, Switzerland's statistics agency said Tuesday. It was the second consecutive rise in inflation, to its highest level since December 2024.
Trump's Move on EU Autos Shows Tariff Risks Persist. Here's What Could Be Next.
President Donald Trump's announcement Friday that he will raise tariffs on cars from the European Union t0 25% was a reminder that he will continue to move these levies up and down-and more are on the way.
While investors have been focused on the Iran war, the Trump administration has been putting the foundation in place for new tariffs to replace many of those struck down by the Supreme Court in February.
Iran War Takes a Dangerous Turn as Fighting Erupts in Hormuz
The U.S. and Iran are teetering on the brink of a dangerous new phase of the war, as both turn to military force to break a standoff in the Strait of Hormuz that has paralyzed shipping and imposed costs on both sides.
Fighting flared for the first time in about a month Monday, with the U.S. Navy trying to open the waterway and Iran hitting commercial ships to keep it closed.
White House Officials Discuss Assessing AI Models That Pose Security Risks
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May 05, 2026 05:01 ET (09:01 GMT)
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