MARKET WRAPS
Stocks:
European shares were on the rise Tuesday as investors brushed off stubbornly elevated Treasury yields to push equities higher.
Long-dated Treasury yields hovered close to multidecade-highs, as concerns remained over fiscal, inflation and debt sustainability risks. In Europe, pressure on French government bonds eased, while Bund yields also slipped.
"The selling pressure in OATs seems to be subsiding and the decoupling with Treasurys is encouraging," Commerzbank said.
Stocks gained across the board in Europe as the continent-wide Stoxx 600 rose, catching up with gains in U.S. stocks Monday.
"The AI build-out is growing fast enough to help shield related companies and industries from rising yields," Swissquote said.
Meanwhile, oil prices were falling, with U.S. benchmark WTI slipping below $90 a barrel as immediate supply concerns eased following an increase in Middle East exports and the release of G-7 emergency stockpiles.
U.S. Markets:
Stock futures were up after the Nasdaq rose to a record high on Monday as Magnificent Seven stocks drove the index higher.
For the day ahead, investors will watch for the U.S. trade balance for August, and remarks from a handful of Federal Reserve policymakers.
Forex:
The euro fell against the dollar but traded above Monday's multi-month low as the spread between French and German bond yields tightens.
The currency may weaken if expectations ease for the European Central Bank's further rate increases, SMBC Nikko Securities said.
The dollar remained firm after reaching its highest level since April 2025 against a basket of currencies Monday, supported by U.S. interest-rate rise expectations and French debt concerns.
Bonds:
Eurozone and Treasury yields fell as some investors found yield levels near multidecade highs attractive enough to tempt them to buy the bonds again.
The selloff in French government bonds is overdone relative to the state of public finances in the first half of 2026, but it is consistent with rising domestic political uncertainty over next year's fiscal plans, Pantheon Macroeconomics said.
The Treasury curve has seen a broad steepening move recently as longer-dated Treasury yields have continued setting multidecade highs, said HSBC.
Energy:
In early European trading, Brent crude was down 0.3%, while WTI futures fell 0.6%.
Gas
European natural-gas prices rose in early trading as the market remained vulnerable despite a recent recovery in LNG flows from the Persian Gulf. EU gas storage is just shy of 73% full, well below 83% at the same point last year and the five-year average of 88%, according to ING.
Metals:
Gold prices ticked higher in early European trading, with focus on Treasury yields and the dollar, as well as fiscal and political turmoil in the eurozone.
EMEA HEADLINES
Genmab Shares Climb After Positive Study Results for Blood-Cancer Drug
Genmab shares jumped after the biotechnology company and partner AbbVie said their Epkinly drug helped extend the time patients with a common type of lymphoma lived without the disease getting worse in a late-stage clinical trial.
Shares in Genmab were up 8.3% in European morning trading Tuesday, taking their year-to-date gain to 27%.
Informa to Separate Academic Business; Buys Clarion Events for $2.96 Billion
Informa said it plans to separate its academic business, Taylor & Francis, and buy business-to-business live events company Clarion Events for an enterprise value of 2.24 billion pounds, or $2.96 billion.
The events and academic-publishing group said it would focus on its core business-to-business arm following the separation of Taylor & Francis.
L'Oréal Taps Advisers to Explore Unloading Chemical-Related Liabilities
L'Oréal has engaged restructuring advisers to explore options for mounting U.S. legal liabilities stemming from its use of talc and other chemical ingredients in some of its cosmetic products, according to people familiar with the matter.
L'Oréal's U.S. subsidiary is working with restructuring counsel Weil Gotshal & Manges and investment bank Ducera Partners to address mass lawsuits from individuals alleging that the talc products have caused illness, the people said. L'Oréal is also among a group of beauty-products companies facing allegations that hair-relaxing products caused users to develop cancer.
Norsk Hydro Expects Further Hit From Gas Supply Challenges at Brazilian Alumina Plant
Norsk Hydro said it expects a further financial hit in the fourth quarter following gas supply challenges at its alumina refinery in Brazil.
The Norwegian company said in August that it had temporarily cut alumina production at the Alunorte plant by 50% due to gas shortages, with the lower production coupled with buying more expensive gas on the open market resulting in a potential hit of $75 million to $100 million in the third quarter.
German Factory Orders Tumbled in August
German manufacturing orders plummeted in August, pointing to increasing pressure on industrial demand as the conflict in the Middle East continues to keep energy costs elevated.
Factory orders in the eurozone's largest economy fell 10.6% on month, compared with a 3.2% rise in July, data agency Destatis said Tuesday. A consensus of economists polled last week by The Wall Street Journal had expected a smaller decline of 1.0%.
GLOBAL NEWS
Companies Raise More Than $1 Trillion in Equity Markets, But AI, Bond Yields Sour Mood
Companies raised more than $1 trillion in global equity markets for only the second time ever over the first nine months of the year, yet higher borrowing costs and artificial-intelligence fears are starting to dampen spirits, a Mergermarket report said.
Finnish smart-ring maker Oura postponed its public offering last month blaming "uncertainty in the IPO market." The company joined a host of anticipated private companies that reportedly delayed their IPO plans, including SoftBank-backed SB Energy and cloud-services company Nscale.
Oil Is Flowing From Hormuz Again-Just Not the Kind the World Needs Most
Ships are ferrying almost as much crude oil out of the Strait of Hormuz as they were before the Iran war. But they are barely moving any barrels of the fuel the world needs most: diesel.
For now, the distinction is paramount in American politics. President Trump's team has explored a long list of options to arrest the skyrocketing price of diesel fuel, which factors into the cost of groceries, gadgets and just about everything else moved on semitruck beds.
Threat of Iranian Drone Attack Prompted U.S. to Pull Bombers From U.K. Base
The U.S. abruptly moved a dozen B-1 bomber aircraft from a U.K. military base on Sunday because of urgent concerns about a potentially complex drone attack ordered by Iran's Islamic Revolutionary Guard Corps, according to U.S. and European officials briefed on the matter.
The planned attack was part of a multifaceted Iranian plot to target the aircraft and kill personnel at RAF Fairford, including American pilots, the officials said.
Saudi-Backed Forces Launch Fight to Free Bab al-Mandeb From Houthis
Saudi and Yemeni forces pressed a counteroffensive against Houthi fighters Monday, officials said, seeking to oust the rebels from the strategic port city of Mokha and ease the threat to energy exports through the narrow Bab al-Mandeb Strait.
Around 100 jet fighters were providing air cover to Yemeni ground troops as they pushed north along the coast in a flanking move toward Mokha in a dawn operation, said Maj. Gen. Turki al-Maliki, a spokesman for the Saudi-led military coalition in Yemen.
NYC Lawmakers Grill AI Executives and Former Employees as City Weighs Guardrails
The former Anthropic researcher whose resignation last month set off fears about artificial intelligence's threat to humanity repeated his warnings at a hearing Monday with New York City lawmakers, who are weighing a spate of bills to rein in the rapidly advancing technology.
"On the current path, I think it is more likely than not that humanity loses control to AI, and it could end in human extinction," Jacob Coxon said at the hearing in downtown Manhattan. "The companies are being extremely reckless."
Write to priscila.barrera@wsj.com
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