Asian equities were mostly lower while European indexes rose at the open, with U.S. stock futures rising and Treasurys steadied in early European trade. Treasury Secretary Scott Bessent warned that countries and companies doing business with Iran will face retaliation, though he did not outline specific steps against individual nations like China. Oil prices fell, with Brent crude dropping 0.4% to $91.84 and WTI slipping 0.5% to $84.55.

The dollar strengthened to a one-week high against a basket of currencies. Bitcoin held above $80,000 in European trade. Nasdaq futures rose ahead of Nvidia's earnings release.

For the day ahead, investors will look for U.S. consumer confidence data. Asian artificial intelligence-linked stocks slid despite Nasdaq futures gains. South Korea's Kospi edged lower, with SK Hynix and Samsung Electronics declining.

Hong Kong's Hang Seng Index and China's Shanghai Composite were down. Japan's Nikkei rose, reversing morning losses. European indexes rallied, with defense and industrial stocks leading gains.

Melrose surged 8.8% in London. Siemens Energy rose in Frankfurt. Safran and Airbus pushed the CAC 40 higher in Paris.

Eurozone government bond yields declined as U.S. Treasury yields stabilized. The two-year Treasury yield rose 0.2 basis points to 4.253%, the 10-year yield was up 0.1 bp to 4.712%, and the 30-year yield was flat at 5.239%.