AI trade gets its Muse
QQQ•Key developments
Key developments that could influence markets on Tuesday:
- Euro zone consumer confidence for September
- Kingfisher Plc
KGF.Learnings
Oil and French debt concerns remain in focus
Meanwhile, Brent crude futures LCOc1 hovered above $100 per barrel after declining for four straight sessions on hopes of U.S.-Iran talks after Trump said he would be open to meeting Iranian President Masoud Pezeshkian, who is expected to be in New York this week for the UN General Assembly.
Attention will also be on French markets as investors confront concerns about the country's long-term finances. The cost of insuring French government debt against the risk of a default jumped to the highest since March 2020 on Monday, with French bonds, or OATs, the worst-performing major-economy bonds in 2026.
AI enthusiasm returns as Muse lifts sentiment
Investor enthusiasm for the AI trade is well and truly back after a strong reception to Meta Platforms' META.O Muse assistant since its U.S. launch revived optimism, while stalling oil prices also buoyed risk sentiment.
The spotlight will be on a high-stakes meeting between Donald Trump and Xi Jinping later this week, with investors watching for signs the leaders of the world's two largest economies can prevent a further deterioration in relations.
