Global markets: Oil eases, bringing some respite to stocks and battered bonds
SPY•World stocks rose and Brent crude fell about 0.75% to $103 a barrel after President Donald Trump said the U.S. would not attack Iran before next month’s midterm elections. European shares gained 1.25%, while the S&P 500 rose 0.33% and the Nasdaq Composite gained 0.4%.
1. Stocks rise as oil slips
World stocks rose on Friday and oil prices eased after President Donald Trump said the U.S. would not attack Iran before next month’s midterm elections, easing some near-term concerns about energy supplies. European shares gained 1.25%, the S&P 500 ticked up 0.33% and the Nasdaq Composite rose 0.4%. Brent crude fell about 0.75% to $103 a barrel after climbing more than 4% in the previous session.
2. Bonds remain in focus
U.S. Treasury yields ticked higher after falling on Thursday, when a 30-year government bond sale drew solid demand. European government borrowing costs were broadly lower after a sharp selloff, and the premium on 10-year French debt over German Bunds stood at about 137 basis points. Investors remain focused on France’s debt burden, budget deficit and political outlook ahead of the 2027 presidential election.
3. AI funding and earnings concerns
Investors weighed fresh fundraising plans by technology companies and concerns about AI valuations and profitability. SpaceX, Broadcom and Oracle were expected to raise billions of dollars to buy advanced AI chips, while Australian data centre operator Firmus shelved its planned $5 billion IPO and said it would pursue private fundraising. The third-quarter earnings season begins next week, with several U.S. banks set to report.
