Market News
World shares mostly gain and oil prices slip as the US raises pressure on Iran - AP
BANGKOK (AP) — Shares were mostly higher Tuesday in Europe and Asia after U.S. stocks drifted to a mixed finish ahead of potentially market-moving events later in the week.
Oil prices fell back after U.S. Treasury Secretary Scott Bessent announced fresh sanctions against Iran and warned that countries persisting in doing business with the Islamic Republic would face retaliation.
Germany's DAX gained 0.5% to 26,240.76 and the CAC 40 in Paris added 0.3% to 8,480.52. Britain's FTSE 100 edged 0.1% higher, to 10,869.93.
The future for the S&P 500 was up 0.3% while that for the Dow Jones Industrial Average rose 0.2%.
During Asian trading, Tokyo's Nikkei 225 gained 0.5% to 65,856.43. Shares in technology investor SoftBank Group climbed 2.3%.
The Kospi in South Korea reversed early losses, gaining 0.7% to 6,742.74 as traders resumed buying tech shares, snapping up bargains.
Hong Kong's Hang Seng was nearly unchanged at 25,511.10, while the Shanghai Composite index picked up 0.2% to 3,889.44.
In Australia, the S&P/ASX 200 gained 0.7% to 9,164.60.
Taiwan's Taiex jumped 0.9%, while the Sensex in India lost 0.2%.
On Monday, areas of the bond market that the U.S. Treasury Department has been trying to calm eased a bit, relieving pressure on stocks.
The S&P 500 slipped 0.3%, while the Dow industrials added 0.3%. The Nasdaq composite fell 0.8%.
Tech stocks led the decline. They've had big swings recently due to worries that the frenzy around artificial-intelligence technology has sent prices too high and huge demand for AI chips will falter if AI doesn't yield enough profits.
Chip giant Nvidia, a tremendous winner of the AI boom, lost 2.9% on Monday. It will deliver its quarterly earnings report on Wednesday and that could dictate the next big move for AI-related stocks. Micron Technology lost 5.8% and Broadcom fell 2.6%.
In the bond market, the yield of the 10-year Treasury eased to 4.69% from 4.74% late Friday, returning to where it was last week before the U.S. Treasury Department announced a surprise move to increase the size of its planned buybacks of Treasurys.
Longer-term Treasury yields climbed through the summer on worries about high inflation, huge government debts and other factors. High yields make it more expensive for everyone to borrow, not just the government, and already have pushed up mortgage rates and hurt the housing industry.
"The latest discussion about using Treasury General Account cash to help finance purchases of longer-dated bonds gave the market something to chew on Monday, and it initially liked the taste. Long yields fell, and the curve flattened," Stephen Innes of SPI Asset Management said in a commentary.
