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European Stocks Higher in Tuesday Trading; Markets Buoyed by US, Iran Peace Deal; Inflation Remains a Concern

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The European stock markets were modestly higher in Tuesday trading as the markets reacted positively to a US-Iran peace deal, but were still cautious about inflation, central-bank policies, and earnings concerns.

The Stoxx Europe rose 0.2%, Germany's DAX edged 0.1% higher, the FTSE 100 increased 0.6%, France's CAC advanced 0.7%, and the Swiss Market Index gained 0.2%.

In corporate news, Novo Nordisk plans to apply for Chinese regulatory approval of its oral weight-loss drug, Wegovy, within the next few months, Reuters reported Tuesday, citing Chief Executive Mike Doustdar.

According to the report, Eli Lilly submitted a marketing application in China for its oral obesity drug late last year, putting the company ahead of Novo in the race to launch a weight-loss pill in the country.

Shares of the Danish pharmaceutical company fell 0.6% in Copenhagen.

Mining companies BHP and Rio Tinto see India as the next major growth engine for global steelmaking, with rising demand and new capacity additions expected to help offset slowing growth in China, Bloomberg reported Tuesday.

BHP's Sales and Marketing Officer Michiel Hovers said customers in India are doubling capacity and that the company is well positioned to support the country's growth, according to the report.

BHP and Rio Tinto didn't immediately respond to a request for comment from.

Shares of the BHP were up 0.4%, and Rio Tinto shares were down 0.4% in London.

STMicroelectronics said Tuesday it launched a $1.5 billion offering of senior unsecured convertible bonds and plans to redeem its outstanding $750 million zero-coupon convertible bonds due 2027.

The company said the new offering consists of two tranches: five-year bonds due 2031 and seven-year bonds due 2033, with a minimum size of $500 million per tranche.

Shares of the French semiconductor company dropped 4% in Paris.

Shell's electric vehicle charging service Shell Recharge and SINEXCEL have launched a joint laboratory in Shenzhen, China, to develop EV charging technologies and energy solutions, the Chinese energy technology company said Tuesday.

The companies also signed a memorandum of understanding covering collaboration in research and development, technical exchange and pilot projects, SINEXCEL said.

Financial terms were not disclosed.

Shares of the British oil and gas major were off 0.7% in London.

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Asia Markets

Update: US Equity Indexes Soar, Crude Oil Sinks as Iran Agreement Poised to Reopen Hormuz

(Updates with index/price moves, macroeconomic data, and political/company news from the first paragraph.)US equity indexes surged after Washington and Tehran reached an interim agreement that sets the stage for a reopening of the Strait of Hormuz, the chokepoint for about a fifth of global crude oil flows.The Nasdaq Composite surged 3.1% to 26,683.94, with the S&P 500 up 1.7% to 7,554.29, and the Dow Jones Industrial Average higher by 0.9% to 51,671.0 on Monday.Technology, communication services, and consumer discretionary led the gainers, while energy was the standout decliner.President Donald Trump and Vice President JD Vance both virtually signed the agreement to end a US blockade of Iranian ports, reopen the Strait of Hormuz, and start 60 days of nuclear negotiations, CNN reported, citing a senior US official.No text of the memorandum of understanding between Washington and Tehran has been released yet, with Trump saying it will likely be publicly released after the signing ceremony, the news report said. Both sides have offered differing accounts on key issues, including Hormuz. Iran intends to collect certain "fees" in the critical waterway, while Trump said it would fully reopen on Friday without tolls, according to the news report.The ceasefire in Lebanon - one of Iran's preconditions for a negotiated settlement - has been observed in the memorandum of understanding, Al Jazeera reported, citing Iran's Foreign Ministry spokesman, Esmail Baghaei. Tel Aviv won't withdraw from land seized in Lebanon, where it is fighting the Iranian-backed Hezbollah militant group, the Associated Press cited Israel's defense minister as saying on Monday.Crude oil futures extended declines. Front-month global benchmark North Sea Brent fell 3.6% to $83.75 per barrel, and US West Texas Intermediate slid 3.4% to $81.48 per barrel.Most US Treasury yields fell, with the 10-year slipping a basis point to 4.48% and the two-year down by 1.5 basis points to 4.07%.In precious metals, gold futures jumped 2.4% to $4,341.52, while silver futures climbed 3.3% to $70.21.In economic news, US industrial production rose by 0.1% in May, compared with expectations for a larger 0.3% increase in a Bloomberg-compiled survey, and following an upwardly revised 0.9% increase in April.The National Association of Home Builders' monthly housing market index fell to 35 in June from a revised 37 in May, compared with expectations for a 37 print in a Bloomberg-compiled poll. The index was still above 32, as reported a year earlier.In company news, Fox (FOX, FOXA) agreed to acquire Roku (ROKU) in a cash-and-stock deal that values the TV streaming platform at about $22 billion, creating a media and technology entity with one of the largest streaming businesses in the US. Shares of Fox slumped 17%, the worst performer on the S&P 500 and the Nasdaq.Western Digital (WDC) shares jumped 16%, the top gainer on the S&P 500 and Nasdaq, after Morgan Stanley raised the company's price target to $650 from $488 while keeping its overweight rating, citing rising demand for Hard Disk Drives.

Dow JonesNasdaq CompositeS&P 500$FOX$FOXA$WDC
Asia Markets

Update: US Equity Indexes Soar, Crude Oil Sinks as Interim Deal Agreed to End Iran War

(Updates with index/price moves, macroeconomic data, and political/company news from the first paragraph.)US equity indexes jumped while crude oil and government bond yields slumped after the US and Iran reached a framework agreement to end the war in the Middle East.The Nasdaq Composite surged 3% to 26,669.5, with the S&P 500 up 1.9% to 7,571.2, and the Dow Jones Industrial Average higher by 1.4% to 51,920.8 after midday Monday. Technology, communication services, and consumer discretionary led the gainers, while energy was the standout decliner.Iran's Supreme National Security Council confirmed on Sunday that a memorandum of understanding had been reached, with military operations on all fronts set to cease immediately. No text of the MoU has been released, and the duo has offered conflicting accounts of what will follow a signing ceremony in Switzerland on Friday, CNN reported.The peace deal will end the US blockade of Iranian ports and reopen the Strait of Hormuz, according to multiple media reports. Iran's Foreign Ministry spokesman, Esmail Baghaei, said the ceasefire in Lebanon - one of Iran's preconditions for a negotiated settlement - has been observed in the memorandum of understanding, Al Jazeera reported.Israel's defense minister said Monday that the country wouldn't withdraw from land seized in Lebanon, where Israel is fighting the Iranian-backed Hezbollah militant group, according to a report from the Associated Press.If Iran abides by its commitments to reopen the Strait of Hormuz and not develop a nuclear weapon, then it will be "reinvited into the world economy," and US sanctions in the region will be loosened, a Stifel note cited US Vice President JD Vance as saying on CNBC on Monday.Crude oil futures slumped. Front-month global benchmark North Sea Brent slumped 4.3% to $80.61 per barrel, and US West Texas Intermediate slid 4.1% to $83.28 per barrel."Whether prices, currently around $13 above pre-war levels, can fall further will depend on several factors, including the pace at which commercial and strategic stockpiles are replenished, how quickly shut-in production can be brought back online, and the extent of any lasting demand destruction caused by a prolonged period of elevated energy prices," Saxo Bank said in a note.Most US Treasury yields fell, with the 10-year down 1.6 basis points to 4.47% and the two-year lower by 2.5 basis points to 4.06%.In precious metals, gold futures jumped 2.8% to $4,355.51, while silver futures climbed 3.3% to $70.22.In company news, Fox (FOX, FOXA) agreed to acquire Roku (ROKU) in a cash-and-stock deal that values the TV streaming platform at about $22 billion, creating a media and technology entity with one of the largest streaming businesses in the US. Shares of Fox slumped 16%, the worst performer on the S&P 500 and the Nasdaq.In economic news, industrial production rose by 0.1% in May, compared with expectations for a larger 0.3% increase in a Bloomberg-compiled survey, and following an upwardly revised 0.9% increase in April.The National Association of Home Builders' monthly housing market index fell to 35 in June from a revised 37 in May, compared with expectations for a 37 print in a Bloomberg-compiled poll. The index was still above 32, as reported a year earlier.The New York Federal Reserve's Empire State manufacturing index fell to 5.7 in June from 19.6 in May, compared with a smaller expected decrease to 13.5 in a survey compiled by Bloomberg. The Empire State index is the first manufacturing sector reading for June and suggests a slower pace of expansion.

Dow JonesNasdaq CompositeS&P 500$FOX$FOXA$ROKU
Asia Markets

Exchange-Traded Funds Rise, US Equities Rise After Midday

Broad Market IndicatorsBroad-market exchange-traded funds IWM and IVV were higher Monday. Actively traded Invesco QQQ Trust (QQQ) added 3.1%.US equity indexes rose after the US and Iran reached a framework agreement to end the war in the Middle East, setting the stage for a reopening of the Strait of Hormuz, the chokepoint for about a fifth of global crude oil flows.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) each fell about 2.9%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) and iShares US Technology ETF (IYW) each rose about 3.7%, while iShares Expanded Tech Sector ETF (IGM) was up 3.6%.The State Street SPDR S&P Semiconductor (XSD) advanced 4.4%, and iShares Semiconductor (SOXX) was 5% higher.FinancialThe State Street Financial Select Sector SPDR (XLF) added 1%. Direxion Daily Financial Bull 3X Shares (FAS) added 2.8%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), declined 2.9%.CommoditiesCrude oil shed 5.6%, and the United States Oil Fund (USO) fell 4.4%. Natural gas added 0.3%, and the United States Natural Gas Fund (UNG) was flat.Gold on Comex gained 3%, and the State Street SPDR Gold Shares (GLD) also rose 3%. Silver advanced 3.5%, and iShares Silver Trust (SLV) was up 3.7%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) shed 0.2%. The Vanguard Consumer Staples ETF (VDC) eased 0.2%, and iShares Dow Jones US Consumer Goods (IYK) was down 0.4%.The State Street Consumer Discretionary Select Sector SPDR (XLY) was up 1.9%. VanEck Retail ETF (RTH) was 0.6% higher, and the State Street SPDR S&P Retail (XRT) rose 0.2%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) dipped 0.3%, iShares US Healthcare (IYH) fell 0.2%, and Vanguard Health Care ETF (VHT) declined 0.1%. IShares Biotechnology ETF (IBB) climbed up 0.8%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) added 1.8%. Vanguard Industrials Index Fund (VIS) gained 1.8%, while iShares US Industrials (IYJ) rose 1.7%.CryptocurrencyIn midday activity, bitcoin (BTC-USD) was up 5.1%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) rose 5.6%, ProShares Ether ETF (EETH) advanced 10.6%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) was 6.1% higher.

Dow Jones^EEM^EXI^FAS^FAZ^GLD^IBB^IGM^IGV^IPK^IVV^IWMNasdaq Composite^IYE^IYH^IYJ^IYK^IYW^PMR^QQQ^RTH^SOXXS&P 500^SPY^UNG^USO^VDC^VHT^VIS^XLE^XLF^XLI^XLK^XLP^XLV^XRT^XSD$BETH$BITO$EETH