MARKET WRAPS
Stocks:
Stocks were higher as risk sentiment recovered and oil prices eased after Israel and Iran halted strikes.
Globally, investors continued to buy the dip, taking advantage of last week's AI selloff to snap up shares in tech companies on the cheap.
Chip-related stocks rebounded particularly in Asia after the market rout in the previous session.
The dip-buying may well have legs, although it's possible that either consumer-price inflation data or quarterly earnings from Oracle on Wednesday could snap the rebound.
"The tech stock pullback was a gift for investors, and we remain buyers on the dips," Edwards Asset Management said.
"Sharp pullbacks have been met with aggressive buying because investors, despite the noise, know that strong fundamentals, including strong revenue and earnings growth, remain in place."
Bucking the trend however was the FTSE index in London, dragged by GSK down more than 3% after agreeing to buy drugmaker Nuvalent.
Stocks to Watch
Morgan Stanley's European strategists said they were doubling down on AI, banks and mining.
Strategists kept semi and semi equipment as their number-one sector, now followed by metals and mining which they upgraded to overweight from equal-weight, and then followed by banks.
The top market, not surprising given the semi focus, is the Netherlands with ASML in its top 50 screen.
Its least preferred sector was luxury.
U.S. Markets:
Stock futures were mostly higher as investors continued to buy the dip.
Forex:
The euro rose, correcting some of its recent losses against the dollar, IG said.
The gains could prove limited in the near term, however, with $1.1550-$1.1560 likely proving the top of the trading range it added.
"Thursday's European Central Bank meeting could present some upside risks for euro-dollar, but we will need to get through U.S. inflation data [on Wednesday] first."
The dollar fell as oil prices eased and demand for safe-haven assets moderated after Iran and Israel paused strikes on Monday.
"It felt as though for the time being at least, the weekend flare-up in hostilities had been stopped, and there was still a path for peace talks to continue," Deutsche Bank said.
Citi's currency strategists said its risk sentiment view had gone from yellow to red, having only moved from green to yellow last week.
The reasons behind the pessimism include a bearish technical picture after Friday's equity sell-off, as well as consumer discretionary stocks falling relative to staples.
U.S. CPI data on Wednesday, the ECB decision on Thursday and conflict escalation could drive further risk-off behavior.
"All three catalysts are likely to see risk-off with higher yields, which we flag as a USD positive regime."
Sterling rose against the euro and with little on the economic calendar and the BOE not meeting until June 18, the currency is likely to remain driven by risk appetite and energy prices in the near term, Monex Europe said.
The Swiss franc was stronger against the euro after falling to a five-week low. The Swiss currency's falls likely reflect lagging Swiss market interest rates, ING said.
Market pricing implies the Swiss National Bank would hold interest rates at 0% this year while other central banks are expected to hike.
Moreover, data on June 30 could show a decent pick-up in interventions by the SNB to weaken the franc in the first quarter, it added.
Bonds:
Eurozone government bond yields edged lower , with the market's focus on a widely anticipated quarter-point rate hike by the ECB on Thursday.
"As the [Middle East] conflict drags on, it becomes clear that oil prices will stay higher for longer with the risk of indirect/second-round effects rising," KBC Bank said.
"While this mostly affects the short end of the curve, inflation risks and other risk premia also push the long end above 3%."
Markets have already repriced the front end of eurozone government bonds in response to inflation risks, Mediolanum International Funds said, adding that the bar for a further selloff in front-end rates was high.
Mediolanum said separately it expected balanced communication from Lagarde, reaffirming the ECB's commitment to its 2% inflation target, while acknowledging downside risks to growth.
"With market pricing already toward the upper end of recent ranges, this balanced stance should be supportive for European bonds ."
Treasury yields were little changed amid slightly lower oil prices but without any progress toward the reopening of the Hormuz Strait.
Energy:
Oil erased most of the previous session's gains after Israel and Iran halted attacks on each other.
Meanwhile, the latest trade data from China shows crude oil imports fell further in April as refiners increasingly drew down inventories rather than sourcing additional barrels from abroad.
"The 29% year-on-year drop together with a surge in U.S. exports, releases from SPR, and a degree of demand destruction, helps explain why oil prices failed to rally more aggressively during last month's supply disruptions," Saxo Bank said.
Coal Price
Delays to thermal-coal deliveries from Indonesia were heightening concerns about supply disruption, according to the Commonwealth Bank of Australia.
"The key watch point remains the ongoing Middle East conflict and impact to LNG markets," it said, adding that resumption of LNG exports through the Hormuz Strait could soften the coal price.
Europe's gas stocking demand will likely be a key support for both LNG and coal prices in the coming months.
Metals:
Gold prices slipped as investors awaited clarity on Middle East developments.
"Higher-for-longer rate expectations remain a headwind for non-yielding assets such as gold, particularly after strong U.S. economic data reinforced expectations of tighter monetary policy," MUFG said.
"Gold remains around 18% below its pre-conflict level, reflecting the combined impact of rising bond yields, a stronger dollar, and shifting interest-rate expectations."
T. Rowe Price shifted its stance on gold to more neutral from overweight, as the near-term backdrop appeared less supportive than earlier in the rally.
Copper Price
Jefferies expects LME copper prices to rise to $6.50/lb in 2027, up from $5.50/lb projected earlier.
It expects copper to peak at $8.00/lb in 2031-32, from $6.50/lb assumed before, pointing to a delayed recovery at the Grasberg mine.
"We see copper supply deficit averaging 491,000 tons annually through to 2030."
EMEA HEADLINES
German Industrial Output Rises For First Time Since November Despite War
Industrial production in Germany rebounded slightly in April, likely helped by recent gains in new orders after firms stockpiled inventory to prepare for sharply higher energy prices caused by the war in the Middle East.
Output rose 0.4% on month, the first rise since November of last year, Germany's statistics agency Destatis said Tuesday, compared with an upwardly revised 0.1% fall in March. A consensus of economists polled by The Wall Street Journal expected zero growth.
Germany Drops Jet Project With France in Setback for European Defense Sovereignty
Germany has pulled out of a stalled stealth-fighter project with France and Spain whose lack of progress has become a symbol for the hurdles Europe faces in rebuilding its militaries as the U.S. reduces its presence on the continent.
Berlin will no longer pursue building and ordering the aircraft after failing to resolve a spat between Airbus and Dassault Aviation over which should take the lead on its development, a senior German government official said.
Lebanon Is Teetering at the Abyss of a New Civil War
BEIRUT-The government of Lebanon is barely able to manage the basic requirements of statehood. It can provide electricity for only a few hours a day, and people avoid its flattened currency in favor of dollars. Its military is only the second-most-powerful force in the country after Hezbollah-or the third counting Israel, which has been expanding its monthslong occupation.
But it is now being pressed by the U.S., Israel and many of its own people toward a confrontation with Hezbollah that risks tilting the country into a new civil war.
GLOBAL NEWS
Oil Prices Fall as Iran and Israel Heed Trump's Call for Ceasefire
Oil prices were edging down early on Tuesday as President Donald Trump appeared to succeed in persuading Israel and Iran to pause fighting.
Brent crude futures, the international standard, were down 1.1% at $93.23 a barrel. West Texas Intermediate futures were down 1.4% to $90.02 a barrel.
China's Strength in Semiconductors, Rare Earths Drives Export Surge
BEIJING-The worldwide surge in demand for artificial intelligence is driving a wave of exports from China, keeping the world's second-largest economy humming despite turmoil from the war in Iran.
China's export growth surged 19.4% in May from a year earlier in dollar terms, according to data released Tuesday by Beijing's General Administration of Customs. The result exceeded the 14.1% year-over-year increase seen in April, and surprised economists who had expected the growth rate to slow.
Wall Street Is Rushing to Fund the AI Bonanza in Every Conceivable Way
Funding rounds and IPOs raising 11-figure sums. Blockbuster bond sales spanning three continents. The casual announcement of an $85 billion equity raise.
Such is life on Wall Street at the dawn of the artificial-intelligence build-out. Tech companies are hungry for cash to invest in data centers, and investors are forking it over through all possible means, in all parts of the globe-a flurry of fundraising that has mostly supported markets by powering technological advances, even as it tests their ability to absorb it all.
Judge Strikes Down Trump Administration's $100,000 H-1B Visa Fee
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June 09, 2026 05:01 ET (09:01 GMT)
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