By Dow Jones Newswires Staff
U.S. Treasury yields edged higher and U.S. futures fell as investors struggled to find direction amid a glut of conflicting signals.
President Trump's comments heralding constructive talks with Iran buoyed markets Monday, but hopes dimmed after Iran denied talks and the path toward a sustained ceasefire remained unclear. Meanwhile, The Wall Street Journal reported U.S. allies in the Persian Gulf are moving closer to joining the conflict alongside the U.S., spurring an early rebound in oil prices.
European stocks fell back after initially opening higher, though Asian stocks largely rebounded. The dollar strengthened further while precious metals struggled to break a downward spiral.
--Brent crude gained 1% to $100.98 a barrel, while WTI was up 2.9% to $87.85 a barrel. "The market reaction likely reflects some retreat in the perceived risks of lengthy disruptions and of damage to energy assets," Goldman Sachs analysts said. However, severe disruptions persist, with flows through the Strait of Hormuz largely halted.
European natural-gas prices fell, with the benchmark Dutch TTF front-month contract down 1.6% to 55.78 euros a megawatt-hour after a sharp drop in the previous trading session. The selloff was more muted than in oil "given that recent damage to infrastructure in the region will have a lasting impact on supply," ANZ analysts wrote.
--U.S. futures edged lower. Futures tied to the Dow Jones Industrial Average and the S&P 500 both slipped 0.2%, while futures for the tech-heavy Nasdaq were 0.1% lower.
Shares in investment bank Jefferies surged 9.2% after the Financial Times reported Japanese group Sumitomo Mitsui Financial Group was working on a takeover bid.
--Asian equities rose broadly in the first trading session after President Trump said the U.S. and Iran had "very good and productive conversations" Monday, though Iran denied the claim. Markets have taken the good news at face value and sense Trump's attempt to de-escalate. Japan's Nikkei Stock Average rose 1.4% and South Korea's Kospi gained 2.7%. Hong Kong's Hang Seng Index was 2.4% higher.
--European equity indexes were mostly lower in volatile early trade. Energy-sensitive industrial and construction stocks lagged as oil prices remain elevated. The Europe-wide Stoxx 600 edged down 0.05%. The industrial-heavy German DAX fell 0.6%, as industrial and chemicals companies dropped. The U.K.'s FTSE 100 was flat as miners and industrials weighed on the index. In Paris, the CAC 40 was also flat as gains for luxuries--sector bellwether LVMH was up 0.9%--were countered by falling industrials. Blue-chip indexes in Italy and Spain fell by 0.3% and 0.1%, respectively.
--The dollar rose along with oil prices as optimism over an easing of the Middle East conflict faded. Trump's comments Monday caused the dollar to fall but the moves proved short-lived. The dollar was negatively correlated to risk sentiment as a safe haven and positively correlated to oil prices as the U.S. is a net exporter of the commodity. The DXY dollar index rose 0.3% to 99.231.
The euro showed little reaction to lower-than-expected flash PMI data.
--U.S. Treasury yields rose in Asian trade as uncertainty lingered. Yields rose faster at the short end of the curve, suggesting investors are more worried about the potential inflationary impact of the war than about growth risks. Money markets currently price in no changes in the Federal Reserve's fed funds target range, according to LSEG data. The two-year Treasury yield rose 6.8 basis points to 3.897%, while the 10-year yield was up 4.4 basis points at 4.379%.
The Netherlands and Germany line up government bond auctions in the eurozone Tuesday, with the former tapping the ultra-long end of the curve and the latter a shorter-dated debt. U.K. government bond yields fell back from Monday's highs.
--Bitcoin edged up 0.5% to $71,267.
--Gold prices were broadly flat after falling sharply in the previous trading session. Futures in New York traded at $4,405.50 a troy ounce, but remained down nearly 12% on the week. "Gold is being sold because it remains one of the few liquid assets still showing gains over the past year," analysts at Saxo Bank said. Meanwhile, silver futures ticked 0.2% higher to $69.47 an ounce, while platinum was down 0.4% to $1,856 an ounce.
Write to Barcelona Editors at barcelonaeditors@dowjones.com
(END) Dow Jones Newswires
March 24, 2026 05:38 ET (09:38 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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