European stocks are expected to open broadly higher on Tuesday as U.S. Treasury yields moved lower following reports about the Treasury’s General Account strategy.
Reports indicate the Treasury could use its near $1 trillion General Account to help fund its recently announced bond buyback program, easing pressure on yields.
U.S. stock futures also ticked higher ahead of key earnings results and important economic data releases due throughout the coming days.
Chipmakers including Nvidia and Marvell Technologies are scheduled to unveil their earnings results this week amid concerns over whether heavy spending on artificial intelligence would deliver matching profits.
On the economic front, a slew of U.S. readings including July’s PCE index, consumer sentiment survey results, and the second estimate for second quarter 2026 GDP are all due this week.
Federal Reserve Chairman Kevin Warsh will speak at the central bank’s annual symposium in Jackson Hole, Wyoming on Friday, with investors seeking clarity on his inflation assessment.
Markets are closely watching for Warsh’s views on the broader “regime change” he has advocated at the Fed, which has become a focal point for monetary policy watchers globally.
Asian markets traded mixed while the U.S. dollar struggled for traction, and gold was subdued at $4,640 an ounce after reaching its highest level in more than three months earlier.
Brent crude futures were little changed above $92 a barrel after having fallen more than 2 percent on Monday, snapping a six-day winning streak in the process.
Investors are preparing for the possibility of a prolonged escalation in tensions between Washington and Tehran after U.S. Treasury Secretary Scott Bessent announced a wave of new sanctions targeting the Iranian regime.
Bessent warned that countries and companies that help Iran move or hide money could face U.S. actions and potentially lose access to the U.S. dollar system entirely.
Iranian Parliament Speaker Mohammad Bagher Ghalibaf brushed off the U.S. threats and mocked Donald Trump with a “Make America Hungry Again” remark, signaling Tehran’s defiant stance.
Economy Minister Ali Madanizadeh said Tehran is “fully prepared” to counter sanctions, further hardening the standoff between the two nations.
An oil tanker was struck by an unknown projectile off the coast of Oman and disabled, the U.K. Maritime Trade Operations reported, adding fresh anxiety to already strained energy markets.
The Houthi rebel group also claimed an attack on a Saudi oil tanker off the port city of Yanbu in the Red Sea, compounding concerns about regional shipping security.
U.S. stocks ended mixed overnight as a drop in oil prices was offset by concerns over AI-driven debt issuance and the government’s attempts to influence the bond market through aggressive buybacks.
The tech-heavy Nasdaq Composite fell 0.8 percent to hit a three-week closing low, while the S&P 500 dipped 0.3 percent and the Dow gained 0.3 percent.
European stocks ended mixed on Monday amid continued uncertainty about tariffs and the ongoing U.S.-Iran conflict, with the pan-European STOXX 600 ending largely unchanged with a slight positive bias.
The U.K.’s FTSE 100 rose 0.4 percent while the German DAX slipped 0.1 percent and France’s CAC 40 shed 0.4 percent, reflecting the cautious mood across the region.
