Public Markets 3 Hours

Last updated: August 3, 2026, 5:32 AM ET

Middle East Diplomacy Boosts Markets, Sinks Oil

President Trump said he had canceled planned strikes on Iran and that peace talks would resume Monday afternoon, a move that sent oil prices tumbling. Brent crude fell sharply, reflecting the reduced geopolitical risk in the region. European energy stocks opened lower on the slumping oil prices as President Trump prioritized diplomacy. Gold prices edged higher as renewed Middle East diplomacy pushed oil prices lower. Eurozone government yields also fell, tracking Treasury yield movements, as oil prices declined on the news of resumed diplomatic talks with Iran. The markets' moves were the first since President Trump said he had halted a planned U.S. assault on Iran.

Yen Intervention and Central Bank Actions

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. The yen's sharp rally sparked a selloff in Japanese equities Monday. However, the currency failed to breach the level that many companies use as the basis for their profit forecasts, giving stocks some room to recover. Strategists believe the rally in the yen is set to bolster a number of other Asian currencies due to their relatively high correlations.

Corporate Dealmaking and Legal Settlements

easy Jet extended Castlelake’s deadline to align its bid with that of rival Apollo for the low-cost airline. Castlelake now has until Friday to present an improved offer. Total Energies agreed to sell a 50% stake in its European onshore solar and wind assets to private-equity firm KKR. Some historic family owners of Anheuser-Busch InBev sold a €731 million stake in the world’s largest brewer, following a surge in its shares earlier this year. Sandoz will pay around $480 million to settle U.S. antitrust pricing litigations, effectively resolving most claims against the Swiss maker of generic drugs. Banco BPM pulled out of merger talks with Monte Paschi, potentially clearing the way for a rival $35 billion takeover offer from Intesa Sanpaolo.

Commodity Markets and Economic Indicators

Tungsten mining is increasingly being seen as an indicator of worldwide conflict and potential future wars. Pakistan’s inflation eased last month, though policymakers remain cautious about potential price pressures from higher energy costs. Indian cinema shares are rising following successful box office openings for Hollywood movies such as "Spider-Man: Brand New Day" and "The Odyssey."