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Rising Oil Prices Pressure Wall Street Pre-Bell; Asia Off, Europe Flat

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Wall Street futures pointed mixed to the downside pre-bell Tuesday, as traders returned from a three-day weekend to weigh Persian Gulf turmoil and rising oil prices.

In futures, the S&P 500 fell 0.3%, while the Nasdaq was up 0.1% and the Dow Jones was down 0.7%.

West Texas Intermediate crude oil traded up 2.5% to $93.75 a barrel in morning hours.

However, the tech sector showed strength in pre-market action, with the VanEck Semiconductor fund (SMH) gaining 1.2% pre-bell.

Investors look ahead this week to the producer price index (PPI) for August on Thursday, and the consumer price index (CPI) for August on Friday, from Washington.

Tech benchmarks Oracle (IRCL) and Adobe (ADBE) report earnings on Thursday.

Asian exchanges traded mostly lower overnight, while European bourses tracked sideways at midday on the continent.

On the economic calendar, the US Small Business Optimism Index fell to 98.7 in August 2026 from 99.8 in July, reported the NFIB.

In pre-market action, Bitcoin traded at $78,392 and 10-year US Treasuries offered 4.80%. Spot gold commanded $4,398 an ounce.

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Swiss Stocks Kick Off Week Downbeat Amid Stable Unemployment Rate

Swiss equities welcomed the new trading week on a somber note, with the Swiss Market Index down 0.81% on Monday's close, as investors took stock of the latest data prints related to the labor market and economy.The unemployment rate in Switzerland stood at 3% in August, unchanged from the previous month, data from the State Secretariat for Economic Affairs showed. The number of unemployed people rose by 2,268 month over month to 141,544.Meanwhile, the country's foreign currency reserves increased to 770.07 billion francs in August from the revised 768.14 billion francs in July, according to data from the Swiss National Bank (SNBN.SW).Zooming out to the euro area, its seasonally adjusted gross domestic product rose 0.6% in the second quarter after zero growth in the previous quarter, Eurostat's third estimate showed. On the jobs front, the number of employed individuals in the region ticked up 0.1% in the second quarter, following a 0.1% rise in the prior three-month period.Over to corporates, Novartis (NOVN.SW) announced that the phase 3 Lp(a)Horizon trial evaluating pelacarsen in patients with elevated lipoprotein (a) levels and established cardiovascular disease missed its primary endpoint of lowering the risk of cardiovascular events, compared with placebo. Specifically, the endpoint involves a composite of cardiovascular death, non-fatal myocardial infarction and stroke, and urgent coronary revascularization requiring hospitalization. The stock closed the trading session 3.18% in the red."PR notes reduction of Lp(a) levels was achieved but did not translate into CV risk reduction. Trial was perceived as higher risk by us and investors and was least important of the 2H26 catalysts. We have a risk-adj. peak sales of c$1.5bn (slightly below VA cons at c$1.7bn), removal of which sees low single digit %NPV downside," analysts at BofA Global Research said.Deutsche Bank Research lifted its price target for Accelleron Industries (ACLN.SW) to 76 francs from 74 francs, with a hold rating on the stock, as it updated its forecasts in line with the turbocharging technologies company's guidance amid first-half results that came in "broadly consistent" with industry peers. At closing, Accelleron's shares fell 0.39%."Data-centre exposure remains the most compelling growth opportunity for the company, although it is still relatively small for the group with management also highlighting strong merchant-marine newbuild activity. Management's guidance for FY26 revenue growth increased by +4% while the margin outlook was unchanged. H1 growth was predominantly volume-led with limited underlying price contribution," Deutsche Bank noted.

^SSMI$ACLN.SW$NOVN.SW$SNBN.SW
Asia Markets

DAX Index Down; German Industrial Output Drops

The blue-chip DAX index closed Monday trading 0.25% lower, as the market weighed Germany's latest industrial production figures, domestic political shifts and escalating weekend US-Iran strikes.According to Destatis, industrial output in July was down 1.1% month over month, against a revised zero growth and an expected 0.1% gain. The downturn was mainly attributed to a 9.2% month-over-month drop in automotive production, likely due to a multi-week factory shutdown.Zooming out, Eurostat's third estimate showed the eurozone's gross domestic product edging up 0.6% in the second quarter, revised upward from the second estimate's 0.4% uptick and following the prior three-month period's zero growth. Household consumption contributed 0.2 percentage points to quarter-on-quarter GDP growth in the euro area.On the political front, investors digested the AfD's victory in Saxony-Anhalt, where the right-wing party won 43.8% of the vote, falling short of an outright majority, while Chancellor Friedrich Merz's CDU party's vote share was nearly cut in half to 17.2%, Reuters reported. "The result confirms AfD's momentum, though mainstream parties rule out a coalition and the direct federal impact is limited," Danske Bank wrote.For the week ahead, the market is expected to focus on the European Central Bank's policy decision on Thursday, the same day as the release of Germany's final August inflation print. Market watchers are also awaiting the August producer price and inflation reports for the US due on Thursday and Friday, respectively.In corporate news, Volkswagen (VOW.F, VOW3.F) signed an agreement to potentially sell its Osnabrück, Germany, facility to Israel's Aurelius Capital and the German state of Lower Saxony, aiming to preserve jobs by transforming the site into a defense and security competence center. The carmaker was down 0.73% at closing.Meanwhile, BofA Global Research upgraded Nordex's (NDX1.F) rating and raised its price objective to 54 euros from 50 euros, saying improving fundamentals for the wind turbine manufacturer support additional estimate upgrades."We upgrade Nordex to Buy from Neutral after large recent underperformance (stock down 26% since 5 May high vs SXNP +4%) as we now see significant further earnings upgrades ahead. In particular, we see further German vol growth, recent US orders and a stable supply chain underpinning 3/21% upside to 2026/27 adj EBITDA consensus (we raise estimates 0/8%). Mgmt could also list their mid-term margin guide to 11-13% (from 10-12%, 2028 cons 11.3%) next Feb, in our view," the research firm wrote. Nordex surged 10.50% on Xetra.

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British Shares Start Week in Red; Chancellor Healey Outlines Growth Plans

UK equities traded lower on Monday, with the FTSE 100 down 0.12% in the closing session, amid Chancellor John Healey's plans to cut red tape, accelerate growth, and back startups.In his pre-Budget speech, Healey emphasized the need to reduce government borrowing to curb inflation, limit legal challenges on infrastructure projects, cut business rules by 25% by mid-2029, and double British unicorns by having the state act as the first customer. As such, the chancellor proposed a 150 million-pound-sterling fund for innovative companies.On a global scale, investors saw no signs of a reopening of the Strait of Hormuz, which drove oil prices higher. Reports suggested fresh US-Iran strikes on commercial shipping around the Strait of Hormuz, with the US targeting three Iranian oil tankers in response to attacks on US warships.Investors also focused on a 0.4% drop in British average house prices in August 2026, after a 0.1% uptick in the previous month. The reading marked the first annual decline since November 2023. "The Lloyds House Price Index for August 2026 paints a picture of a market under meaningful pressure from multiple directions: elevated mortgage rates, geopolitical uncertainty pushing up energy prices, and a consumer that is both cautious and increasingly stretched... Sellers are not panicking and cutting prices aggressively; they are simply sitting tight. Buyers, meanwhile, are waiting for clarity on the path of interest rates," RBC Capital Markets said.In corporate news, Standard Life plc (SDLF.L) climbed 2.57% to the top of the blue-chip index after reiterating all 2026 financial targets, while interim loss attributable to owners of the parent widened to 189 million pounds from 168 million pounds a year ago."Adj. operating profit of GBP563m was 4% better than consensus, supported by a mix of better operating result from its key segments," RBC said in another report. "However, net income was impacted by adverse economic variances (-GBP473m), reflecting equity hedging, resulting in a 43% miss - SDLF emphasised prioritising stable SII surplus capital and maintaining predictable dividend, while accepting hedge-related volatility on IFRS results."On the downside, Unilever (ULVR.L) dropped 1.43% as subsidiary Hindustan Lever held its capital markets day. "HUL accounts for 22% of the market cap of Unilever down from 30% in April and 45% at peak," Deutsche Bank Research said. "The company outlined the significant long-term opportunity in India, though whether consumption is 'inflecting' positively now, we are less certain."On the economic calendar, the British Retail Consortium's retail sales are due Tuesday, the Royal Institution of Chartered Surveyors' house price balance on Thursday, and gross domestic product, industrial production, and balance of trade on Friday.

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