MARKET WRAPS
Watch For:
CPI for Germany; trading update for BMW
Opening Call:
European stock futures were mixed, after Asia stocks rose. U.S. Treasury yields edged lower, the dollar weakened. Oil was higher while gold fell.
Equities:
European equity futures were mixed as fears about a full-blown war in Iran eased.
President Trump signaled that Iran was open to ending the tit-for-tat fighting that erupted between the two countries this week, after earlier saying that the ceasefire with Iran was over.
"Despite the U.S. ramping up attacks on military sites in Iran, the market drew some reassurance from the Trump administration's decision to avoid targeting Iranian energy infrastructure," ANZ Research analysts said.
This week's 5% rise in oil prices "should not be expected to materially weigh on equities," said Daniel Tan, director at Grasshopper Asset Management.
"The escalation in U.S.-Iran tensions represents a possible downside risk, but without a much larger increase in energy prices, the impact on global equity markets should be less material," Tan added.
Forex:
The U.S. dollar weakened against major currencies, though is likely to be supported by sentiment.
The markets have shrugged off Middle East tensions as oil prices reversed lower, said OCBC Group Research strategists, noting that this has eased inflation fears.
The greenback "traded modestly softer [overnight], likely reflecting the improvement in broader risk sentiment," the strategists added.
Bonds:
Treasury yields declined as President Trump says Tehran is seeking a deal, easing fears of escalation that might cripple energy supply chains.
With oil prices declining, inflation fears have also cooled as well as curbing forecasts of an interest rate increase by the Federal Reserve.
U.S. jobless claims remained within range and home sales unexpectedly fell, according to data released overnight. Investor focus now turns to June CPI inflation, due next week.
Citi economists expect signs of inflation cooling as energy prices lost steam last month.
Energy:
Oil edged higher amid prospects that the U.S.-Iran tensions may be contained, though America's oil supplies are far from prepared for the ceasefire to end.
Global oil prices retreated to prewar levels and tanker traffic through the Strait of Hormuz gradually resumed after President Trump announced a temporary pause in the fighting in mid-June-but crude stockpiles will take much longer to restore.
Now that Trump has declared the ceasefire over, the situation risks becoming more dire.
"The worst fears of the oil market could still be realized later this year as we get to the minimum operating levels," said Andy Lipow, president of Lipow Oil Associates in Houston.
"The only way to get prices back in balance is to have prices go up, such that you would have demand destruction. Once the shelf is bare, there's nowhere to turn," he said.
Metals:
Gold fell, with the rally seen as likely limited due to some headwinds, said HSBC Global Investment Research's James Steel.
Fed rate-increase prospects still could limit any rallies, though these expectations have been mostly factored in, the chief precious metals analyst said.
Also, a strong U.S. dollar could "put up considerable headwinds to rallies," Steel added.
However, "heavy liquidation may partially reverse as structural factors aiding gold pre-[Mideast] conflict resume and its safe haven and portfolio diversification properties attract buyers," the analyst said.
-
Copper prices edged higher as easing geopolitical tensions support sentiment, but expectations for rate increases by the Federal Reserve are limiting gains, said Baocheng Futures analysts.
Prices found support after President Trump said Iran was eager to resume negotiations, raising hopes for a diplomatic breakthrough and easing concerns over broader regional risks, they said.
Tight supply conditions also offer support, with copper inventories continuing to decline and physical demand improving as downstream buyers take advantage of recent price weakness, they added.
TODAY'S TOP HEADLINES
The Chip Trade Is Helping Wall Street Shake Off Latest Iran Strikes
Wall Street's latest war jitters didn't last long.
Oil prices dropped and the S&P 500 closed near a record on Thursday after President Trump signaled that Iran was open to ending the tit-for-tat fighting that erupted between the two countries this week. Shares of smaller companies and financial firms jumped, as did several of the market's most crowded artificial-intelligence plays.
A Big Winner From the Iran War: Africa's Richest Man
There is a surprise winner from the Iran war: Africa's richest man.
Nigerian industrialist Aliko Dangote went "through hell" building a $20 billion oil refinery that was plagued by a decade of delays and cost overruns that doubled the tab for the project.
U.S. Biotechs Are Keeping More Secrets to Beat Copycats in China
Steve Potts is developing medicines for hard-to-treat cancers. Just don't ask what, exactly, he is working on. If word gets out, he fears a Chinese company could beat him to market.
Potts's company, whose team has shepherded a combined 13 drugs through Food and Drug Administration approval, is one of a growing number of biotechs going to extreme lengths to stay secret. He won't pitch venture-capital firms. He hasn't presented at academic conferences. The company, Breakthru Medicine, is taking money only from a handful of trusted, high-net-worth individuals and universities.
Write to singaporeeditors@dowjones.com
Expected Major Events for Friday
04:30/NED: May Manufacturing output
06:00/NOR: Jun CPI
06:00/ROM: May International trade
06:00/DEN: Jun CPI
06:00/GER: Jun CPI
06:00/NOR: Jun External trade in goods
06:45/FRA: Jun CPI
07:00/AUT: May Production Index
07:00/TUR: May Industrial Production Index
07:00/CZE: Jun CPI
07:00/CZE: May Import & export price indices
07:00/SWI: Jun Consumer Sentiment Index
07:00/SVK: May Construction production
08:00/BUL: May Industrial Production
08:00/BUL: Apr Trade with EU Member States - preliminary data
08:00/BUL: May Trade with third countries - preliminary data
08:00/ITA: May Industrial Production
08:00/EU: Jun Long term interest rates statistics
08:00/FRA: Jul IEA Oil Market Report
09:00/GRE: May Industrial Production Index
09:00/LUX: May Industrial Production
09:00/MLT: May International Trade
09:00/CYP: May Foreign Trade (provisional)
09:00/CRO: Jun PPI
10:00/IRL: May Industrial Production and Turnover
10:00/POR: May International trade statistics
10:00/POR: Jun CPI
10:00/MLT: May Industrial Production Index
All times in GMT. Powered by Onclusive and Dow Jones.
Write to us at newsletters@dowjones.com
We offer an enhanced version of this briefing that is optimized for viewing on mobile devices and sent directly to your email inbox. If you would like to sign up, please go to https://newsplus.wsj.com/subscriptions.
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
July 09, 2026 23:59 ET (03:59 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments