MARKET WRAPS
Stocks:
European shares were down Tuesday while oil rose after the U.S. and Iran returned to tit-for-tat strikes.
Oil traded above $91 a barrel, renewing concerns over supply from the Persian Gulf.
"Shipping conditions remain fragile, with another tanker reportedly attacked near Oman" overnight, MUFG said.
Commerzbank said the renewed hostilities dashed recent hopes of progress toward normalizing shipping through the strait. Trump "also signaled that Washington was prepared to conduct further attacks," it added.
Global bond yields also surged as the rise in oil prices fueled inflation expectations and increased the prospect of interest-rate hikes in the coming months. Japan's 10-year government bond yield hit its highest level in about three decades, while the 10-year Treasury yield rose to its highest level since January 2025.
"The rise in global yields continues unabatedly," KBC Bank said. "Ongoing elevated oil/energy prices, markets anticipating tighter monetary policy and higher (fiscal) risk premia all are possible explanations for this trend move."
U.S. Markets:
Stock futures fell as investors continue to weigh if the war in Iran may escalate.
Investors will also be keeping an eye on August's Institute for Supply Management manufacturing data and the latest job openings report, both due today.
Forex:
The dollar rose on the prospect of the Federal Reserve raising interest rates, potentially as early as this month.
Bonds:
Eurozone bond yields rose in opening trade, with the 10-year Bund yield rising to its highest since 2011, according to LSEG data.
The 10-year Treasury yield rose to its highest level since January 2025, in early trade, as the selloff in the global bond market continues on the back of flared-up hostilities in the Middle East, adding to inflation fears.
Energy:
In early morning European trade, Brent crude oil for November delivery rose 1.35%, while WTI's most-traded contract rose 1.5%.
Metals:
Gold prices held below $4,500 a troy ounce as a global selloff in government bonds raises the likelihood of a Fed rate hike, dimming the attractiveness of the precious metal.
"The precious metal now looks vulnerable to selling, as the market adjusts to the apparent shift in the monetary policy backdrop," ANZ said.
EMEA HEADLINES
Novartis Pauses Autoimmune Cell Therapy Studies After Deaths
Novartis paused eight clinical trials of an experimental therapy targeting autoimmune and neurological disorders in late August, after three patients died.
The Swiss pharmaceutical company temporarily halted the studies after learning of three fatal cases of a severe immune response, a spokesman said. It wasn't immediately clear when the deaths occurred.
Mine Warfare With Iran Hampers U.S. Efforts to Win Control of Hormuz
The U.S. decision to strike Iran for the first time in a month shows Washington's determination to win its cat-and-mouse contest for control over the Strait of Hormuz even at the risk of an escalation that could turn the conflict back into a hot war.
American forces said they hit Iranian launch sites that were preparing to fire rockets used to deploy naval mines in the narrow waters of the strait. In return, Tehran fired a salvo of missiles at Jordan, which is home to thousands of American troops. All were intercepted.
Washington's Deadly New Headache: an al Qaeda-Houthi Terrorist Alliance
On a balmy evening, Jibril "One-Armed" Yahya Ali and his new bride set out for a honeymoon drive along the beach outside al-Ghaydah, Yemen.
Jibril, a Somali, and his Yemeni wife had met through a mutual acquaintance, an arms dealer who helped Jibril buy military-grade weapons from Yemen's Houthi rebels. Jibril would then smuggle the arms to al-Shabaab, an Islamist insurgent group fighting to overthrow the government in Somalia.
Swiss Life to Cut Around 600 Positions by the End of 2028
Swiss Life plans to cut around 600 jobs by the end of 2028 in a move to boost efficiency and profitability.
The reduction will take place largely through natural attrition, with about half of the cuts expected in Switzerland and the other half at its asset-management operations abroad, the Zurich-based insurer said Tuesday.
GLOBAL NEWS
Oil Prices Rise as Renewed U.S.-Iran Fighting Deepens Hormuz Supply Risks
Oil prices rose more than 1% Tuesday as renewed fighting between the U.S. and Iran heightened concerns that disruptions to energy flows through the Strait of Hormuz could persist.
The front-month Brent crude contract rose 1.4% to $91.72 a barrel in European trading, while West Texas Intermediate futures gained 1.6% to $87.10 a barrel.
SEC Presses Investment Firms to Prove They Have Access to Shares in Hot Startups
The Securities and Exchange Commission has stepped up its examinations of firms behind so-called special purpose vehicles that purport to offer exposure to private company investments.
SEC examiners have been asking registered investment advisers for proof that their SPVs own or have exposure to the shares in private companies that they claim to, according to people familiar with the matter.
Bessent Criticizes Canada as Global Summit Shows Divisions
ASHEVILLE, N.C.-Treasury Secretary Scott Bessent blamed Canadian Prime Minister Mark Carney for the collapse of trade talks this month aimed at averting steep U.S. tariffs on Canadian goods, and brushed off concerns about a trade war with America's second-largest trading partner.
"I don't think you can be in a tit-for-tat [trade war] with someone who's 13 times larger than you are," Bessent said in an interview with CNBC Monday. "I think this is very unfortunate that Prime Minister Carney has turned this into a political shouting match," he added.
Trump Administration Steps Up Immigration Crackdown on Truck Drivers
Trump administration officials are escalating an immigration crackdown on commercial truck drivers, setting off a new clash with Democratic-led states.
Both the Department of Homeland Security and the Transportation Department are demanding licensing data across the U.S. about immigrants driving trucks, in a hunt for what they say is a rash of drivers with improper certifications.
Washington's Deadly New Headache: an al Qaeda-Houthi Terrorist Alliance
On a balmy evening, Jibril "One-Armed" Yahya Ali and his new bride set out for a honeymoon drive along the beach outside al-Ghaydah, Yemen.
Jibril, a Somali, and his Yemeni wife had met through a mutual acquaintance, an arms dealer who helped Jibril buy military-grade weapons from Yemen's Houthi rebels. Jibril would then smuggle the arms to al-Shabaab, an Islamist insurgent group fighting to overthrow the government in Somalia.
How a Brazilian Billionaire Helped Shape Trump's Beef Import Plan
The Brazilian billionaire who shares control of JBS, the world's largest meatpacker, lobbied President Trump to lower tariffs on beef imports as a way to tame rising U.S. prices.
Joesley Batista met with Trump in the Oval Office on Aug. 20, and they discussed how additional beef supplied from Brazil could help if Trump dropped a 26% import tax, according to people familiar with the matter. It couldn't be learned who organized the meeting between Batista and Trump.
Write to priscila.barrera@wsj.com