Public Markets 8 Hours

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

Middle East Diplomacy Boosts Markets, Dents Oil

U.S. stock futures were poised to extend their rally as President Trump announced the cancellation of planned strikes against Iran and indicated that peace talks would resume Monday afternoon. Oil prices plummeted significantly after President Trump held off on further attacks on Iran and stated that the U.S. would engage in diplomatic talks beginning Monday afternoon. Gold prices edged higher as renewed Middle East diplomacy pushed oil prices lower. European energy stocks opened lower on slumping oil prices, as President Trump prioritized diplomacy and announced new talks with Iran would begin Monday. Eurozone government bond yields fell, tracking moves in Treasury yields, as oil prices declined after Trump said diplomatic talks with Iran would resume. The markets' moves were the first since President Trump said he had halted a planned U.S. assault on Iran. FTSE 100 stocks were poised to lag as oil prices fell on optimism surrounding the situation with Iran.

Yen Intervention and Currency Movements

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 U.S. and Japan confirmed their intervention in the currency markets to support the yen. The yen’s sharp rally sparked a selloff in Japanese equities on 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 set to bolster a number of other Asian currencies based on their relatively high correlations, according to Citigroup Inc. and Barclays Bank Plc. The U.S. Treasury may be using 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.

Corporate Dealmaking and Sector Shifts

easy Jet stated that Castlelake has until Friday to align its bid with that of rival Apollo. TotalEnergies agreed to sell a 50% stake in its European onshore solar and wind assets to private-equity firm KKR. Some of the historic family owners of Anheuser-Busch InBev sold a €731 million stake in the world’s largest brewer, after its shares surged at the start of this year. Banco BPM pulled out of merger talks with Monte Paschi, a move that could clear the way for a rival $35 billion takeover offer from Intesa Sanpaolo. Sandoz will pay approximately $480 million to settle U.S. antitrust pricing litigations, meaning the remaining claims against the Swiss maker of generic drugs in the U.S. are those from individual plaintiffs. Atkore has agreed to be bought by Prysmian for $3.8 billion, including debt, with Atkore shareholders set to receive $95 a share in cash. Japan’s Orix has agreed to buy Aer Fin Ltd., a U.K.-based airplane parts company, in a deal worth about ¥100 billion, including debt. AstraZeneca and Bristol Myers Squibb are discussing a potential $400 billion tie-up. Malayan Banking Bhd. has agreed to buy out Belgian insurer Ageas SA’s minority stake in Etiqa, a move that would give Malaysia’s biggest lender full ownership of the Southeast Asian insurer.

Economic Indicators and Market Trends

Indian cinema operator shares are rising after blockbuster openings for Hollywood movies "Spider-Man: Brand New Day" and "The Odyssey." Pakistan’s inflation eased last month, though policymakers remain wary that higher energy costs could reignite price pressures. The momentum trade just gave investors a taste of the pronounced profit-and-loss swings they can expect if they fail to hedge or diversify, a warning reinforced by growing inflation risks. China’s manufacturing activity slowed in July for export-oriented firms, according to a private survey, in line with an official gauge. Chinese government bond futures began trading in Hong Kong on Monday, marking authorities’ third attempt to use the hedging tool to further open up the country’s debt market. Iron ore sank to the lowest level in more than a year amid concerns about a major physical trader of the commodity, which compounded existing market softness linked to a challenging demand outlook. Fanuc Corp. shares plunged the most in four decades after the maker of factory robots raised its profit outlook by less than expected, heightening fears about soaring prices of materials.

Broader Economic and Geopolitical Context

Senator Bernie Moreno, a Republican from Ohio, broke his silence regarding allegations of domestic abuse his daughter has made against Representative Max Miller. Tungsten mining helps explain the state of worldwide conflict, with the tungsten market acting as a century-old prediction market for war. The French government has asked postal workers to check in on older people to help prevent heat-related deaths. Moroccan migrants described their despair at their economic future, explaining what propelled them across the border with Spain. Lenders in France are signaling a willingness to offer campaign loans if government guarantees are in place, potentially boosting election financing. A British entrepreneur behind Olix is raising $312 million from investors, including Arm, in an effort to take on Nvidia and triple the AI chip start-up’s valuation to $3.3 billion. Governments have stopped correcting budget deficits, but bond markets have so far allowed them to continue without consequence. The 'junk' label for high-yield bonds appears to belong to a different era. Changes to two widely cited claims regarding Palantir's platform data are being made by NHS England after staff concerns, as scrutiny grows over the U.S. tech company’s contract. Anheuser-Busch InBev is shifting marketing dollars to other brands as tie-ups with celebrities and cage fighting fail to halt the decline in sales of Bud Light. Changes at the Australian Securities Exchange are the latest sign of a global rollback of diversity policies, influenced by the 'Trump effect.' Geopolitical barriers risk slowing progress and trade, and Europe can become a trusted connector in this environment. Detroit carmakers had a strong second quarter, while their European rivals remain downbeat in the ongoing "car wars." The chair of Ofcom is launching a review of the regulator to help rein in Big Tech, stating the watchdog will need more resources to enforce online safety rules and take on a wider brief. Financial companies hope to modernize markets with blockchain technology, but systemic risks remain. Daimler Truck is accelerating its target to double its defense revenue to €1 billion by 2028. Tensions over immigration policy are mounting as Spain's migrant crisis reopens deep EU rifts, prompting bloc's home affairs ministers to convene. The success of "Spider-Man: Brand New Day" and "The Odyssey" is lifting Indian cinema stocks. Manipal Health Indo-MIM and Juniper Green Energy have cut offer sizes to get their deals through, indicating a potential slowdown in India's listing boom.