Public Markets 3 Days

Last updated: August 3, 2026, 5:30 AM ET

Middle East Diplomacy Boosts Markets, Oil Falls

Global markets and oil prices tumbled as President Trump announced a pause in planned U.S. assaults on Iran and signaled a resumption of peace talks. U.S. stock futures were on track to extend Friday's gains following the news, while European energy stocks opened lower on slumping oil prices. Gold prices edged higher as renewed Middle East diplomacy pushed oil prices lower. Eurozone government bond yields fell, tracking Treasury yields, as oil prices declined after Trump said diplomatic talks with Iran would resume Monday. The markets’ moves were the first since President Trump said he had halted a planned U.S. assault on Iran. Analysts and lawmakers are attempting to discern if Mr. Trump’s latest announcement signifies genuine negotiations with Iran or is a tactic. The markets’ moves were the first since President Trump said he had halted a planned U.S. assault on Iran.

Central Bank Intervention and Currency Markets

The dollar fell against a basket of currencies and should be weaker than current levels after the U.S. and Japan confirmed joint currency interventions to support the yen. U.S. and Japan confirmed yen intervention, a move described as puzzling. The US Treasury may be utilizing euros rather than dollars to fund its yen purchases to avoid weakening its own currency and casting doubt on its strong greenback policy, according to strategists. The Treasury Secretary Scott Bessent and Japan's officials stated they would not hesitate to intervene further in currency markets. The yen’s sharp rally sparked a selloff in Japanese equities Monday, but the currency failed to breach the level that many companies use as the basis for their profit forecasts, giving stocks scope to recover. The rally in the yen is expected to bolster a number of other Asian currencies based on their relatively high correlations, according to Citigroup Inc. and Barclays Bank Plc. The US Treasury has limited liquid resources to support further coordinated currency intervention alongside Japan, though its firepower could be expanded substantially if officials resort to more extreme measures. Japanese stock futures pointed to a lower open as traders remain on alert for further yen intervention after Tokyo and New York coordinated to support the currency.

Corporate Dealmaking and Sector Movements

Castlelake has been granted an extension until Friday to align its bid with that of rival Apollo for easy Jet. (REF:6) Prysmian is nearing a $3.8 billion deal to acquire U.S. electrical maker Atkore Inc. (REF:23, Total Energies has agreed to sell a 50% stake in its European renewable assets to KKR. (REF:13) Malaysia's Maybank is set to buy Ageas's stake in Etiqa for $1.2 billion, giving it full ownership of the insurer. (REF:46) Japan's Orix Corp. has agreed to acquire U.K. aviation firm Aer Fin in a $640 million deal. (REF:28) Some historic family owners of Anheuser-Busch InBev sold a €731 million stake in the brewer.