By Dow Jones Newswires Staff
U.S. Treasurys and the dollar stabilized while stock futures were little changed as investors weighed continued uncertainty around the Middle East conflict ahead of the weekend pause in trade.
Brent crude oil prices held below $100, suggesting continued optimism that U.S.-Iran peace talks would soon resume even as the Strait of Hormuz remained effectively closed. President Trump reaffirmed his expectation that conflict with Iran would soon end, and said that Tehran agreed to hand over its highly enriched uranium--a key sticking point in talks. However, energy supply disruptions persist, with ships sanctioned by the U.S. now being subject to boarding, search and seizure under the American blockade of Iranian ports.
Software stocks extended their recovery in Europe after the tech-heavy Nasdaq hit a record high on its 12th consecutive winning session.
--Brent crude fell 0.8% to $98.57 a barrel while WTI was down 1.1% to $93.61 a barrel in early European trading. Still, supply remains tight and uncertainty persists over key sticking points in the negotiations. "Oil eased, but the market is still trading on diplomacy headlines rather than calm nerves," analysts at Saxo Bank said. "The broader supply story has not gone away, with disruptions to Middle East production still feeding into the physical market, suggesting prices may remain elevated even if diplomacy progresses."
--U.S. stock futures for the S&P 500 were up 0.1%, while the tech-heavy Nasdaq edged 0.1% lower after both indexes closed at record highs Thursday. Futures for the Dow Jones Industrial Average climbed 0.2%. Netflix shares fell by close to 10% premarket as investors reacted negatively to the streaming giant's second-quarter guidance, and the planned departure of co-founder Reed Hastings.
--Asian stocks were mostly lower on Friday amid a fragile situation in the Middle East. Japan's Nikkei Average Index fell 1.75% and South Korea's Kospi was 0.5% lower. Hong Kong's Hang Seng Index last fell 1.1%.
--European stock indexes were mixed in muted early trade. Software stocks extended their rally while utilities slipped, with the Europe-wide Stoxx 600 trading flat. The German DAX was flat as gains for software and autos were countered by slipping industrials. In Paris, the CAC 40 rose 0.2% as luxuries made modest recoveries after selling heavily earlier in the week. Italy's FTSE MIB was 0.2% higher as banks largely gained. London's FTSE 100 edged 0.1% lower as energy utilities slipped, with SSE and Centrica falling 3.2% and 3.4%, respectively. Spain's IBEX 35 was 0.2% lower, while the semiconductor-heavy Dutch AEX edged 0.2% lower.
--The dollar was steady as conflicting headlines on the Middle East conflict kept investors cautious. The DXY dollar index traded flat at 98.247.
--U.S. Treasury yields edged higher in Asian trade with the two- to 10-year curve steepening. "Markets have exited crisis mode, but rates have stabilized at higher levels rather than returning to pre?conflict ranges," Societe Generale rates strategists said in a note. "Normalized volatility and cleaner positioning have not revived duration demand," they said. The two-year Treasury yield was up 0.4 basis point at 3.779%, while the 10-year Treasury yield rose 1 basis point to 4.318%, according to Tradeweb.
Eurozone government bond yields also rose. The 10-year German Bund yield was up 2.5 basis points at 3.051%, the 10-year French OAT yield rose 3 basis points to 3.697% and the 10-year Italian BTP yield was also up 3 basis points at 3.825%, according to Tradeweb.
--Bitcoin fell 0.5% to $74,851, LSEG data show.
--Gold futures were on track for another weekly gain. While gold recouped part of its earlier losses, remaining about 9% below levels seen at the start of the conflict, with persistent risks to energy supplies and damaged infrastructure likely to keep inflation uncertainty elevated. In early European trading, New York gold futures were flat at $4,807.30 a troy ounce.
Write to Barcelona Editors at barcelonaeditors@dowjones.com
(END) Dow Jones Newswires
04-17-26 0439ET
