Stock Earnings Increase as Traders Focus on Iran – Europe Market Wrap
Stocks gained on good corporate profits, as traders waited to see if Iran would join discussions to restore Middle Eastern oil exports. The Dollar rose, as Treasuries fluctuated ahead of Kevin Warsh’s Senate hearing.
S&P 500 futures rose 0.3%. Brent fell 1.1% to below $95 a barrel after Trump said negotiations between the US and Iran might begin as early as Tuesday. UnitedHealth gained more than 6% in early trading on a first-quarter profit beat. General Electric also outperformed expectations.
All eyes are on the Middle East as Trump indicated that he is unlikely to extend a two-week ceasefire in a conflict that has upended global oil markets. Tehran has yet to confirm its participation in the Islamabad negotiations, with Trump threatening to hit the Islamic Republic’s electrical grid if diplomacy fails.
European markets gained 0.2%, but gold fell 0.7% to below $4,800 per ounce. Apple dipped 0.3% in early trading after the iPhone maker chose a replacement to CEO Tim Cook. The yield on benchmark 10-year Treasuries remained unchanged at 4.25%, while the rate on their two-year counterparts rose 1 bps to 3.74%.
UK gilts underperformed European peers as former top British bureaucratRobbins said he felt political pressure to clear Mandelson to become US ambassador.
