Oil fell and Treasuries rose after President Donald Trump said fresh US-Iran talks would begin Monday, boosting optimism the two sides will reach a deal to reopen the Strait of Hormuz. Brent for October slid as much as 7.3% to $81.55 a barrel after Trump said he’d agreed to call off a massive attack on Iran as allies in the Middle East, including Saudi Arabia, asked him to pursue a deal instead. Treasuries rose across the curve as oil’s decline eased inflation concerns. The benchmark 10-year yield dropped four basis points to 4.69%, after rising to the highest since January 2025 last week. Gold climbed 0.5% to about $4,070 an ounce. Futures contracts for the Nasdaq 100 Index and those for European shares advanced 0.9%. Asian stocks, however, fell as South Korean chipmakers tumbled. The yen strengthened amid speculation of more intervention after support from the US. The Japanese currency advanced as much as 1.4% to 155.23 per dollar with traders remaining on alert for further intervention after Japan and the US warned they were ready to wade into the market again after coordinated action last week. Bloomberg’s gauge of the dollar fell 0.2%, with the yen contributing the most to that move. Monday’s market gyrations came after days of escalating tensions that saw the US threaten to hit the Islamic Republic “very hard” in a bid to end a conflict now in its sixth month. A supply squeeze triggered by the war drove up fuel costs, stoking fears of another inflation spike and unsettling investors. Focus is also returning to the artificial intelligence theme after a week of violent swings culminated in a sharp rebound for chip stocks after a rout in semiconductors earlier. A regional gauge of chip stocks fell 1.2% as Samsung Electronics Co. and SK Hynix Inc. both tumbled over 8%, offsetting gains in Japanese semiconductor companies such as Renesas Electronics Corp. and Kioxia Holdings Corp. Alibaba Group Holding Ltd. rose 6.5% in Hong Kong after releasing its latest flagship AI model, with performance claims putting it alongside global leaders like Anthropic’s Fable. On Friday, China’s DeepSeek rolled out a public beta application programming interface, or API, for its flagship artificial intelligence model, V4 Flash, touting advancements in agentic abilities.
South Korea’s Kospi Index, a bellwether for AI investments, fell more than 5%, after surging a record 18% on Friday. With the Nikkei 225 Stock Average also slipping, the broader MSCI gauge of Asian shares lost 0.6%. Elsewhere, Japan’s Ministry of Finance said it conducted a yen-buying operation on July 31, US time, in coordination with the US Department of Treasury and wouldn’t hesitate conducting further joint intervention. Treasury Secretary Scott Bessent said the US stepped in to help fight “disorderly” movements in the yen and is ready to keep helping Japan. Bessent also pointed to a Federal Reserve facility Japan could use. The US 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.
Nikkei -1.12% Hang Seng +0.04% CSI -0.73% Kospi -5.16% Shanghai -0.59% Shenzen -0.18%
Eur$ 1.1533 CNH 6.7527 CNY 6.7530 JPY 156.49 GBP 1.3472 CHF 0.8087 RUB 79.4003 TRY 47.5396 WTI$ 79.57 -6.14% Gold 4,057 +0.27% BTC 62,782 -1.08% ETH 1,856 -1.47%
S&P +0.60% Nasdaq +0.91% EuroStoxx +0.85% FTSE +0.36% Dax +1.01% SMI
Macro :
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