MARKET WRAPS
European stocks struggled for direction Tuesday, as investors assessed the current state of play of the Middle East conflict.
Despite initial gains at the opening bell, European equity indexes mostly slipped into negative territory as the rally sparked Monday by President Trump's more conciliatory comments faltered.
Approaching midday, the Stoxx 600 and the FTSE 100 were essentially flat, while the DAX and the CAC 40 were in the red.
The move reverses gains seen in Asia and comes amid what First Abu Dhabi Bank said is confusion in markets brought about by erratic messaging from the Trump presidency.
"While we remain optimistic that common sense--and military de-escalation--will prevail in the near-term, we are also cognisant that the mixed and often incoherent messaging coming from the Oval Office, will only fuel continued market volatility."
Business activity in the eurozone and parts of Asia , meanwhile, slowed as the war in Iran drove energy prices and uncertainty higher.
Meanwhile, fighting continued with Iran launching more attacks at Israel and at other targets in the region. Saudi Arabia said it intercepted and destroyed drones in the eastern part of the country.
At the same time, some Gulf states were said to be edging toward joining the fight against Iran.
Elsewhere, the European Union and Australia agreed to a free-trade deal and security partnership .
U.S. Markets:
Stock futures pointed to lower open Tuesday as investors struggle to find direction amid conflicting signals.
Forex:
The dollar rose along with oil prices as optimism over an easing of the Middle East conflict faded.
The euro fell against the dollar and the single-currency could stay weaker against the dollar this week as a swift end to the Middle East conflict looks unlikely, keeping energy prices elevated, Commerzbank said.
The euro traded flat versus the pound and sterling has limited scope to rise against the euro as the bar is exceptionally high for the Bank of England to raise interest rates, ING said.
Bitcoin marginally rose following a recovery in U.S. and Asian stocks overnight.
Bonds:
The French 10-year government bond yield turned slightly higher, while the euro showed little reaction to weaker-than-expected flash estimate purchasing managers data for March.
The risk in European rates runs in both directions and that asymmetry deserves to be in the price, Neuberger Berman said, adding that Treasurys, even without their traditional safe-haven bid, reflect a central bank with a clearer easing path than its European peers.
"The rise in government [bond] yields globally, while driven by the repricing of central bank expectations, is also likely being impacted by central banks and institutions needing to raise cash given rising oil prices."
The Netherlands and Germany line up for government bond auctions in the eurozone Tuesday, with the Netherlands set to auction 1.5 billion to 2 billion euros, while Germany will offer 5 billion euros.
Yields on U.K. government bonds fell as concerns about an energy supply shock eased after the U.S. postponed attacks on Iranian energy plants.
"Obviously much now depends on the progress of any talks, and whether the more optimistic rhetoric is followed up by concrete action," Deutsche Bank said.
Treasury yields continued to rise as uncertainty around the development in the Middle East dominates the market.
"Conflicting signals over the prospect of a diplomatic resolution kept markets on edge," Sky Links Capital Group said.
Yields rose faster at the short end of the curve, suggesting that investors are more worried about the potential inflationary impact of the war than about growth risks.
Near-term supply at U.S. coupon auctions remains mostly constant, but uncertainty around tariffs and the Iran war clouds the medium-term outlook, Natixis said.
"Now, given the unknown new equilibrium on tariffs and thus revenue, and an unknown duration for the war with Iran, the odds of being able to wait until February 2027 are falling."
Bond markets remain driven by the Middle East newsflow, but the underlying dynamics have changed over the last couple of days, Commerzbank said.
"The focus may shift from fighting inflation to its side effects."
Energy:
Oil prices rebounded following a 10% drop in the previous trading session, with The Wall Street Journal reporting that U.S. allies in the Persian Gulf are moving closer to joining the fight against Iran.
"The market reaction likely reflects some retreat in the perceived risks of lengthy disruptions and of damage to energy assets," Goldman Sachs said.
European natural-gas prices fell, with the benchmark Dutch TTF front-month contract down 1.6%.
"Global gas prices came under pressure on the potential de-escalation of hostilities in the Middle East," ANZ said, adding however that "the selloff was less severe, given that recent damage to infrastructure in the region will have a lasting impact on supply."
Metals:
Gold prices were broadly flat after falling sharply in the previous trading session, with investors closely monitoring developments in the Middle East.
"The Middle East war continues to trigger a broad macroeconomic shock across global markets, forcing investors to reprice inflation, rates, growth, and liquidity conditions simultaneously," Saxo Bank said.
Meanwhile, silver futures ticked higher to $69.47 an ounce, while platinum was down to $1,856 an ounce.
Copper
Copper prices fell back below the $12,000 mark due to concerns over the impact of the Iran war on global economic growth and inflation.
"Copper, a bellwether for the global economy, has been under pressure as the Middle East conflict has sapped risk appetite across financial markets," ANZ said.
EMEA HEADLINES
SK Hynix to Buy $8 Billion of ASML EUV Equipment
SK Hynix plans to purchase around $8 billion of extreme ultraviolet equipment from ASML, ramping up its advanced-chip production capability in response to surging demand fueled by artificial intelligence.
The South Korean chip maker's board on Tuesday decided to buy 6.913 billion euros' worth of EUV scanner equipment-the most advanced lithography machine used to print extremely tiny circuit patterns on silicon wafers-from the Dutch company, according to its regulatory filing in Seoul.
Puig's Shares Leap on Potential Estee Lauder Merger
Shares in Puig Brands surged after U.S. cosmetics company Estee Lauder and the Jean Paul Gaultier owner confirmed they were in talks over a possible merger, which would combine two of the world's biggest beauty companies.
The stock was about 14% higher at 17.75 euros in European morning trading. Over the year to date, shares are up nearly 20%.
Exor Swings to Net Loss as Listed Companies Hurt Results
Exor, the holding company of Italy's Agnelli family, swung to a net loss as it suffered from poor performances at some of its largest listed companies, including carmaker Stellantis.
The Amsterdam-listed company late Monday reported a net loss of 3.79 billion euros ($4.40 billion) for 2025 compared with a net profit of 14.67 billion euros the year prior. This came as dividend income from the companies it invests in fell to 781 million euros from 1.135 billion euros.
Revolut Reports Jump in Profit on Higher Customer Numbers
Digital bank Revolut said its expanding customer base and diversified revenue streams lifted the British group's annual profit.
The London-based firm, which earlier this month got regulatory approval to operate as a fully-fledged bank in its home market, runs an app that lets users make payments, trade assets and hold money. Revolut competes with traditional banks for retail and business customers and has recently applied for a national bank charter in the U.S.
Bang & Olufsen Cuts Guidance on Disappointing Product Launch and Global Uncertainty
Bang & Olufsen lowered its financial expectations and pulled midterm guidance as sales of a new product disappointed, while intensified geopolitical tension and economic uncertainty are expected to affect the remainder of the financial year.
The Danish consumer-electronics company said late Monday that revenue in its fiscal third quarter missed expectations after the significantly lower-than-anticipated sales performance of its Beosound Premiere soundbar.
GLOBAL NEWS
Brent oil prices claw back losses to top $100 again after hours
Global oil prices edged higher in after-hours trading Monday to recoup a portion of the nearly 11% lost during the regular session, as traders geared up for what's likely to be another day driven by developments in the Iran conflict.
Brent for May delivery BRNK26 BRN00 traded at $103.8 a barrel in electronic trading, up from Monday's settlement at $99.94.
Japan Consumer Inflation Rises at Slower Pace
Japan's consumer prices rose at a slower pace in February, but the inflationary risks posed by the war in the Middle East loom large, likely keeping the central bank on its toes.
A pullback inflation can buy the central bank time to thoroughly examine the economic threat posed by the conflict and the surge in energy prices-a major issue for Japan, as it relies heavily on imports from the Middle East. But government subsidies played a big part in last month's inflation print, and analysts say the relief could be fleeting.
Dozens of Colombian Troops Dead as Military Plane Crashes
A large military transport plane carrying mostly Colombian army troops crashed Monday in the country's southern jungles, killing 66 and injuring dozens more as its fuselage was engulfed in flames after hitting the ground, officials said.
The aircraft, a Lockheed Martin Hercules C-130, was lifting off from Puerto Leguízamo, a town on the Putumayo River across from Peru, when it went down, said Defense Minister Pedro Sanchez.
Pentagon Further Limits Press Access Following Court Loss
The Defense Department introduced new restrictions on press access on Monday, days after a federal judge ruled that key elements of the limits it introduced last year were unconstitutional.
In a Post on X on Monday evening, Pentagon spokesman Sean Parnell said the Defense Department would close the correspondents' corridor immediately, moving credentialed journalists to a new workspace in an annex facility outside the Pentagon, "but still on Pentagon grounds." The new space will be "available when ready," he wrote.
Residents on Israel's Northern Border Stay Put Despite Hezbollah Fire
KFAR GILADI, Israel-By the time the air-raid sirens sound in this kibbutz near the Lebanon border, Hezbollah's missiles are often only seconds away.
Since war between Israel and Hezbollah returned in early March, the place looks like a well-maintained ghost town, with clean roads and tidy gardens, but no one around. The hundreds of people who live here keep mostly out of sight, trying to stay within steps of a shelter. The clap of outgoing artillery fire is almost constant as the Israeli military lobs explosives at the forests just across the border.
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This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
March 24, 2026 06:58 ET (10:58 GMT)
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