Otherwise, Brent remains under $100 a barrel in part due to the surprising speed with which Saudi Arabia is reportedly restoring flows through its East-West pipeline.
Tehran says it engaged with the United States through a Qatari mediator in New York to present its conditions for opening the Strait of Hormuz, but most of these have been rejected before.
President Trump at the United Nations claimed the talks made progress, but he's said the same for months now, and then soured the mood by threatening to annihilate Iran.
Iranian President Masoud Pezeshkian addresses the UN General Assembly later today and markets are alive to reports he might hold talks with Trump.
AI enthusiasm remains in focus
The buzz from Meta's Muse is still there, showing consumers can be tempted to take up AI agents en masse. Attention is now shifting to Google's CC agent to see whether it can match that breakout success.
Also of note is demand for Softbank's 9984.T $10 billion-plus debt deal which has reportedly attracted more than $20 billion of investor interest. That would make it one of the largest junk bond deals ever and a barometer of lender confidence in the AI story.
It also represents more competition for government debt, though Treasuries are at least holding up so far today with 10-year futures TYc1 rising 6 ticks.
China and the market calendar ahead
Chinese President Xi Jinping arrives in Washington later in the day amid speculation a trade truce between the two countries will be extended, and there could be cooperation over AI.
Key developments that could influence markets on Wednesday:
Flash PMIs for September from Europe, UK and US
Speakers include Fed Governor Michael Barr, ECB Supervisory Board member Pedro Machado, ECB Board member Piero Cipollone, ECB chief economist Philip Lane, ECB Vice President Boris Vujcic
A$ reaches parity with Canadian dollar as markets stay subdued
So far, it's been the kind of day where the Australian dollar reaching parity on its Canadian cousin for the first time in more than eight years is the most eye catching event in markets.
Wall Street futures have barely budged and European stock futures are up modestly. Asian stocks started strong but have since flagged, suggesting investors may be running out of steam after five straight sessions of gains.
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