Category: Market Summary

European energy stocks moved lower on Wednesday as crude prices extended their decline following renewed discussions between Iran and Oman over managing shipping through the Strait of Hormuz.

Brent crude futures dropped 2.5% to $86.38 a barrel by 07:43 GMT, while WTI crude futures fell 2.8% to around $80.08. Both benchmarks extended sharp losses from the previous trading session as investors assessed the possibility of improved maritime access through the strategically important waterway.

Iran and Oman discuss interim shipping framework

Iran and Oman are discussing an interim arrangement covering shipping through the Strait of Hormuz, including the possible establishment of a temporary navigation corridor and cooperation on removing mines.

The discussions come while negotiations between Iran and the US remain stalled and Washington continues to increase economic pressure on Tehran.

Before the conflict, approximately one-fifth of global oil and LNG shipments passed through the Strait of Hormuz. Any meaningful progress towards reopening the route could therefore ease concerns over energy supplies and place additional downward pressure on crude prices.

PVM analyst questions scale of oil selloff

PVM analyst Tamas Varga questioned whether the scale of Brent’s decline, which exceeded $6 a barrel over two days, was justified by the latest diplomatic developments.

Varga noted that a permanent restoration of flows through the Strait of Hormuz “is anything but a foregone conclusion” despite reports that Iran and Oman could reach an agreement covering mine clearance and management of shipping traffic through the chokepoint.

He argued that supply risks are likely to remain and that oil inventories could continue declining over the coming weeks, although he acknowledged that “sitting in this chair has often proven uncomfortable recently.”

The comments underline the uncertainty surrounding the oil market, with traders balancing signs of diplomatic progress against the possibility that significant disruption to energy supplies could continue.

BP, Shell and European energy majors decline

The renewed fall in crude prices weighed on major European oil and gas companies as markets opened.

BP (LSE:BP.) dropped 2.8%, while Shell (LSE:SHEL) declined 1.7%. Equinor (LSE:0A7F) fell 2.5% in Oslo and Italy’s Eni (BIT:ENI) lost 1.7%.

Elsewhere, TotalEnergies (EU:TTE) declined 1.2%, while Repsol (TG:REP) fell 1.4%.

The weakness followed a 3.1% decline in WTI on Tuesday, when expectations of diplomatic progress outweighed continuing concerns surrounding potential supply disruptions.

With uncertainty over the Strait of Hormuz still elevated, further developments in the Iran-Oman discussions are likely to remain an important driver for crude prices and European energy stocks.

London’s blue-chip market was broadly unchanged on Wednesday, remaining close to multi-week highs as weakness among major energy companies offset gains in housebuilders and mining stocks.

The FTSE 100 traded around the flatline, with falling commodity costs providing some support to consumer-facing businesses but weighing heavily on the index’s large oil producers.

Shell and BP both dropped more than 1.5% as a sharp decline in crude prices put pressure on the energy sector.

Oil retreats as Strait of Hormuz concerns ease

The subdued start followed a stronger previous session for UK equities, when sentiment was supported by the government’s newly announced £10 billion social housing programme aimed at increasing the supply of affordable homes across the country.

On Wednesday, however, energy stocks became one of the main drags on the London benchmark after global oil prices fell by around 2%.

The decline followed reports that Iran and Oman had resumed bilateral discussions focused on managing and potentially reopening the Strait of Hormuz.

The prospect of maritime traffic returning through the strategically important waterway eased immediate concerns about global oil supplies. Brent crude futures subsequently fell towards $86 a barrel, prompting investors to take profits across major energy stocks.

Copper rally supports London-listed miners

Strength in industrial metals provided some support to the wider UK market and helped counter weakness in the oil sector.

Copper climbed to its highest level in six months as inventories held by the London Metal Exchange declined, improving sentiment towards major mining companies.

Rio Tinto PLC (LSE:RIO) and Anglo American PLC (LSE:AAL) benefited from the stronger backdrop for industrial metals as investors assessed the potential impact of tighter copper supplies.

Gold prices, meanwhile, edged lower as markets awaited forthcoming US inflation figures for further indications about the outlook for monetary policy.

With energy stocks under pressure but miners and other areas of the market providing support, the FTSE 100 remained broadly steady near its recent highs.

U.S. stock futures moved higher on Tuesday, pointing to a positive start on Wall Street after the major averages finished the previous session mostly lower.

A renewed decline in crude oil prices helped improve market sentiment, with traders reassessing the potential impact of Washington’s latest economic measures against Iran. Oil had already fallen by more than 2% on Monday, ending a six-session winning streak, before U.S. crude futures extended the retreat by more than 3% on Tuesday.

The sharp reversal in energy prices has also helped bring Treasury yields down from recent highs, providing additional support for equity valuations.

Washington Unveils New Iran Sanctions Campaign

The latest move in oil followed the U.S. Treasury Department’s announcement of “Operation Economic Outcast,” which it described as an unprecedented, government-wide economic campaign targeting Iran and its “enablers.”

The U.S. imposed sanctions on nearly 60 entities, individuals and vessels that authorities said “enable the Iranian regime’s recklessness.”

However, the measures stopped short of immediately applying secondary sanctions to countries maintaining commercial relationships with Iran. That appeared to reassure commodity markets, which had been preparing for potentially tougher action capable of disrupting global oil flows.

With crude prices retreating, Treasury yields also continued to ease, helping strengthen the case for an initially positive session on Wall Street.

Nvidia and Inflation Data Remain Key Market Tests

Investors may nevertheless be reluctant to make aggressive moves ahead of several major events later this week.

Nvidia (NASDAQ:NVDA) is due to release its second-quarter results after Wednesday’s closing bell, making the report an important test of investor confidence in artificial intelligence and semiconductor spending.

Closely watched U.S. inflation figures are also approaching, while attention will turn to the Jackson Hole economic symposium and Federal Reserve Chair Kevin Warsh’s remarks on Friday.

These events could influence expectations for monetary policy and determine whether the recent improvement in risk appetite can be sustained.

Technology Weakness Weighs on Monday’s Session

Wall Street endured a mixed session on Monday, with stocks recovering from their early lows but generally remaining under pressure.

The Nasdaq fell 200.26 points, or 0.8%, to 25,980.19, leaving the technology-heavy index at its lowest closing level in three weeks.

The S&P 500 declined 21.51 points, or 0.3%, to 7,652.86.

The Dow Jones Industrial Average bucked the broader trend, advancing 140.15 points, or 0.3%, to 53,417.16 as gains in Visa (NYSE:V), Walmart (NYSE:WMT) and Disney (NYSE:DIS) provided support.

Nvidia Slides Ahead of Quarterly Results

Technology shares were responsible for much of Monday’s weakness, with semiconductor stocks suffering particularly heavy selling.

The Philadelphia Semiconductor Index dropped 2.7%, while Nvidia (NASDAQ:NVDA) lost 2.9% as investors positioned themselves ahead of the AI chipmaker’s earnings announcement.

Computer hardware and networking stocks also came under pressure. Energy shares weakened alongside crude oil, although overall market activity remained relatively subdued as traders waited for the week’s major catalysts.

Investors Look to Warsh for Clues on Fed Strategy

Federal Reserve Chair Kevin Warsh’s Jackson Hole appearance on Friday is expected to attract significant attention as markets assess the outlook for inflation and interest rates.

“[Fed Chair Kevin] Warsh is scheduled to deliver keynote remarks on Friday, and markets will be looking for greater clarity on both his assessment of inflation and the broader “regime change” he has advocated at the Fed,” said Daniela Hathorn, Senior Market Analyst at Capital.com.

She added, “He has been reluctant to provide conventional forward guidance, meaning the speech may focus more heavily on the Fed’s reaction function and longer-term philosophy than explicitly signaling what policymakers will do in September.”

With few major U.S. economic releases immediately available, some investors may remain cautious until Wednesday’s consumer inflation figures provide a clearer picture of price pressures.

For now, the combination of falling crude prices, lower Treasury yields and stronger futures is creating a more constructive backdrop for Wall Street, although Nvidia, inflation and Jackson Hole could determine the market’s next major move.

European equities moved modestly higher on Tuesday as U.S. Treasury yields pulled back from recent peaks, easing some of the pressure that higher borrowing costs have placed on global stock markets.

Bond yields declined following reports that the U.S. Treasury could draw on its nearly $1 trillion General Account to help finance its recently announced bond buyback programme. The prospect of using existing cash reserves provided some relief to debt markets and supported sentiment across European equities.

Iran Sanctions Prove Less Severe Than Feared

Investors also responded positively to a U.S. sanctions package targeting Iran that was less aggressive than some market participants had anticipated.

Washington warned countries against continuing business with Iran, threatening secondary sanctions against those that fail to comply. However, the Treasury Department stopped short of immediately imposing penalties.

The absence of more severe measures helped reduce concerns that the latest sanctions campaign could cause an immediate disruption to crude oil supplies.

Against this backdrop, Germany’s DAX Index gained 0.8%, France’s CAC 40 advanced 0.3% and the UK’s FTSE 100 rose 0.1%.

German Economy Expands Faster Than Initially Estimated

Economic data also provided some encouragement after Destatis reported that Germany’s economy performed better than previously estimated during the second quarter, supported by resilient exports despite ongoing geopolitical uncertainty.

Gross domestic product increased 0.3% quarter-on-quarter, revised higher from the preliminary estimate of 0.2%. The economy had expanded by 0.4% during the first quarter.

On an annual basis, German GDP growth accelerated to 1.0% in the second quarter from 0.7% during the previous three months.

The figures provided further support to European markets by suggesting that the region’s largest economy maintained momentum despite challenging global conditions.

Technology Stocks Gain Ahead of Nvidia and Marvell Earnings

Technology shares were among the stronger performers, with ASML Holding (EU:ASML) and Infineon Technologies (TG:IFX) advancing as investors prepared for important semiconductor earnings later this week.

Attention is particularly focused on Nvidia (NASDAQ:NVDA), whose results are expected to provide fresh insight into demand for artificial intelligence infrastructure and semiconductor spending.

Marvell Technology (NASDAQ:MRVL) is also due to report this week, adding to a busy period for the chip industry and potentially providing further indications of demand across data centres and AI-related markets.

The combination of lower U.S. Treasury yields, reduced concerns surrounding Iran sanctions and encouraging German economic data helped European equities maintain a modestly positive tone during Tuesday’s session.

U.S. stock futures advanced on Tuesday as investors prepared for a busy stretch of corporate and economic news, with Nvidia (NASDAQ:NVDA) earnings and upcoming inflation figures among the main events in focus. Meanwhile, Washington unveiled a broader economic campaign against Iran and Bitcoin (COIN:BTCUSD) extended its rally beyond $80,000.

Oil prices moved lower as traders assessed the likely impact of the new Iran measures on global supplies, while Intuit (NASDAQ:INTU) is scheduled to release its latest results after the closing bell.

Nvidia Earnings Loom as U.S. Futures Advance

Wall Street was positioned for a firmer start, with Dow futures gaining 89 points, or 0.2%, by 03:08 ET (07:08 GMT). S&P 500 futures rose 20 points, or 0.3%, while Nasdaq 100 futures climbed 165 points, or 0.6%.

The move followed losses for the major U.S. averages in the previous session. Weakness among companies exposed to the artificial intelligence theme, including semiconductor manufacturers and chip equipment businesses, outweighed gains in financials and consumer staples.

Nvidia’s upcoming quarterly results are now set to take centre stage, given the chipmaker’s importance as a gauge of investment and demand across the AI industry. Investors are also awaiting inflation figures later this week for further indications of the direction of U.S. monetary policy.

Trade relations between Washington and Ottawa have provided another source of uncertainty. Efforts to prevent proposed 50% U.S. tariffs on a wide range of Canadian products failed to produce an agreement, prompting Canada to threaten matching retaliatory measures.

Vital Knowledge analysts noted that the tariffs are still several weeks away from taking effect, leaving room for further negotiations. Planned U.S. duties on Canadian automotive, truck and steel exports have meanwhile been delayed until January 2027.

Washington Steps Up Economic Campaign Against Iran

Iran remained a major geopolitical focus after U.S. Treasury Secretary Scott Bessent announced a fresh sanctions initiative on Monday designed to increase Tehran’s financial isolation.

Bessent described the strategy as an “economic onslaught against Iran’s financial connections” globally, saying it would target Tehran’s “enablers” and make it harder for the country to maintain access to international financial channels.

President Donald Trump is also asking other governments to make “specific requests to cease their interactions” with Iran as Washington intensifies its economic campaign following the start of the conflict in late February.

The measures have not yet been implemented, but countries have been given a timetable to wind down activities involving Iran.

Bessent warned that “any entity that facilitates money laundering on behalf of Iran” would lose access to the U.S. dollar system, adding that “the clock has just started ticking.”

Oil Prices Slip as Markets Assess Sanctions Impact

Oil traders appeared relatively unfazed by the latest measures, with Brent crude futures falling 0.6% to $91.58 a barrel on Tuesday.

Both Brent and U.S. West Texas Intermediate crude had declined by more than 2% in the previous session. WTI subsequently moved towards a one-week low, with profit-taking following its recent multi-week rally adding to the pressure.

“Oil prices drifted lower yesterday despite renewed U.S. plans to tighten economic pressure on Iran,” ING analysts said.

“[T]raders [are] treating the U.S. effort to nudge partners away from Iranian trade as marginal rather than market-moving.”

A key question is how aggressively Washington will pursue secondary sanctions against countries continuing to buy Iranian energy. ING noted that China is the largest purchaser of Iranian energy, raising doubts over whether the U.S. would risk destabilising its fragile trade truce with Beijing.

Intuit Results Put AI Competition in Spotlight

Intuit (NASDAQ:INTU) will be another focus for investors when the software company reports after Tuesday’s market close.

In May, Intuit reduced its annual revenue forecast for TurboTax and announced plans to shrink its workforce by 17%, equivalent to roughly 3,000 positions.

The measures were viewed as an attempt to streamline the company and redirect resources towards its own artificial intelligence products. However, they also raised concerns about the competitive threat posed by increasingly capable general-purpose AI systems.

Large language models can already replicate some functions traditionally provided by tax preparation software, despite not having access to Intuit’s proprietary financial data, potentially increasing competitive pressure on TurboTax over time.

Bitcoin Extends Rally Beyond $80,000

Bitcoin (COIN:BTCUSD) continued its sharp advance on Tuesday, reaching its highest level in more than three months amid strong demand for spot Bitcoin exchange-traded funds and continued risk appetite.

The cryptocurrency rose 4.0% to $80,415.7 by 03:48 ET, having earlier touched $81,220.4.

Bitcoin is on course to record gains in eight of the past nine sessions, with short-covering providing additional momentum as the rally forces bearish traders to close positions.

Concerns over U.S. public finances have also helped drive interest in the cryptocurrency. Those worries intensified after the Treasury announced plans last week to roughly double the pace of bond buybacks as part of efforts to contain rising government borrowing costs.

FTSE 100 opens flat as Volex raises its profit outlook, Gulf Keystone remains resilient and Brent crude edges higher amid Iran focus.

Market Overview

The FTSE 100 opened broadly unchanged, at 10,854.57, while the Euronext 100 gained 0.03 per cent and Germany’s DAX rose 0.23 per cent. European equities found support as concerns over the immediate impact of expanded US sanctions against Iran eased. Overnight in the US, the Nasdaq closed lower at 25,980.19 and the S&P 500 declined to 7,652.86.

Commodity markets were mixed, with copper lower while gold, Brent crude and natural gas edged higher. Bitcoin rose against sterling. The US dollar was unchanged versus the pound, while the Swiss franc, euro and Japanese yen weakened marginally and the Australian dollar strengthened slightly. Oil markets remained focused on Iran and the Strait of Hormuz, although investors viewed the latest US economic pressure as posing less immediate risk to physical supply.

---

Market Numbers

FTSE 100: Up (0.001%), 10,854.57
Euronext 100: Up (0.03%), 1,933.47
DAX: Up (0.23%), 26,167.89
NASDAQ: Down, 25,980.19
S&P 500: Down, 7,652.86

---

In the Headlines

Production resilience – Gulf Keystone Petroleum (LSE:GKP)
The Kurdistan-focused oil and gas producer maintained financial resilience despite production disruption at its Shaikan Field, with operations subsequently resuming and output recovering. The company also declared a further interim dividend, highlighting its liquidity and ability to support shareholder returns.

Profit outlook raised – Volex (LSE:VLX)
The specialist power and data transmission manufacturer raised its FY2027 profit expectations after strong trading across its end-markets, led by demand from data centre customers. Improved operating leverage means the board now expects underlying operating profit to exceed current market expectations.

---

Currencies (vs GBP)

USD: Unchanged (0.00%), $1.3638
CHF: Down (0.00%), Fr.1.0941
EUR: Down (0.01%), €1.1688
JPY: Down (0.01%), ¥217.014
AUD: Up (0.00%), $1.9062
Bitcoin (BTC/GBP): Up, £58.681.23

---

Commodities

Copper: Down
Gold: Up
Brent Crude: Up
Natural Gas: Up

European stocks moved higher on Tuesday, recovering from recent multi-week lows as investors reacted with relief after Washington’s heavily promoted “economic D-Day” against Iran stopped short of triggering immediate disruption to global energy supplies.

The pan-European Stoxx Europe 600 Index gained 0.4%, reversing some of the weakness seen in recent sessions. Germany’s DAX and France’s CAC 40 both advanced by more than 0.4%, while London’s FTSE 100 edged 0.1% higher.

The rebound followed several volatile weeks for global markets, during which investors have had to contend with rising energy costs, elevated longer-term bond yields and increasingly confrontational rhetoric surrounding the Middle East.

Markets had entered Monday expecting potentially significant measures after the Trump administration described its forthcoming package against Iran as an “economic D-Day.” Washington had also threatened secondary sanctions against foreign countries maintaining commercial relationships with Tehran.

The measures ultimately proved less disruptive than investors had feared, largely reinforcing the existing US sanctions stance rather than introducing immediate and unexpected restrictions on international crude oil flows.

Oil Prices Stabilise as Supply Concerns Ease

Energy markets responded by retreating from recent multi-week highs. Brent crude futures had fallen more than 2% overnight as geopolitical concerns eased before trading broadly unchanged on Tuesday at around $91.50 a barrel.

The stabilisation in crude prices provided some relief for European equities by reducing concerns that another sharp increase in energy costs could feed into inflation and raise expenses across industrial supply chains.

Lower energy prices also helped improve broader risk sentiment after recent volatility had pushed investors towards more defensive positioning.

German Q2 GDP Beats Forecasts on Export Momentum

European markets received further support from stronger-than-expected economic data from Germany, where revised figures showed that Europe’s largest economy expanded more rapidly than previously estimated during the second quarter.

German gross domestic product increased by 1.0% year-on-year, exceeding expectations for growth of 0.9% and accelerating from 0.7% in the previous quarter.

On a quarter-on-quarter basis, Destatis reported growth of 0.3%, above the preliminary estimate of 0.2%.

Exports provided an important contribution to the stronger performance, rising 2.0% from the previous quarter. Growth was supported by shipments of chemicals, electronics and transport equipment.

The figures offered some reassurance that Germany continues to maintain underlying economic momentum despite elevated borrowing costs and relatively subdued domestic consumer demand.

Treasury Cash Plan Helps Global Bond Yields Retreat

Equity markets also benefited from a pullback in global government bond yields following reports of a potential change in US Treasury financing strategy.

Benchmark Treasury yields eased from recent highs after reports suggested the US Treasury Department could use cash held in its Treasury General Account to finance an expanded debt buyback programme.

Using existing cash reserves rather than increasing the issuance of short-term Treasury bills could reduce the amount of new government debt that investors are required to absorb.

Germany’s 10-year Bund yield subsequently moved back towards 3.23%, easing some of the valuation pressure that higher borrowing costs had placed on European equities.

Investor attention is now shifting towards Nvidia Corp.’s closely watched earnings announcement on Wednesday and Federal Reserve Chair Kevin Warsh’s address at Jackson Hole on Friday.

Chesnara and Vistry Lead UK Corporate Movers

Among individual UK stocks, Chesnara (LSE:CSN) gained nearly 5% after reporting strong capital generation.

Vistry (LSE:VTY) climbed 10% after the housebuilder secured £350 million of government funding under the Social and Affordable Homes Programme, providing support for the delivery of new housing.

The combination of easing geopolitical concerns, stronger German economic data and lower sovereign bond yields helped restore some confidence to European markets after several difficult sessions.

UK stocks moved modestly higher on Tuesday as Bitcoin extended its rally to a more than three-month high, helping support broader investor appetite for risk despite continued geopolitical tensions surrounding Iran.

The FTSE 100 gained 0.15% as of 03:25 ET (07:25 GMT), while other major European markets also advanced. Germany’s DAX rose 0.24% and France’s CAC 40 added 0.26%.

Sterling was little changed against the US dollar, trading 0.03% higher at $1.3640.

Bitcoin Climbs Above $80,000

Bitcoin (COIN:BTCUSD) moved above the $80,000 mark, trading around $80,323 after reaching $81,237.94 during Asian trading. That represented its strongest level since mid-May.

The cryptocurrency has gained approximately 28% during August and is on course for its strongest monthly performance since November 2024.

Recent momentum has been supported by a softer US dollar following Treasury Secretary Scott Bessent’s plans for Treasury bond buybacks, which helped renew buying interest across cryptocurrency markets.

Bitcoin has also risen around 16% since US President Donald Trump called on Congress last week to approve legislation providing greater regulatory clarity for cryptocurrencies.

Iran Tensions Keep Geopolitical Risks Elevated

The stronger tone across risk assets came despite continued uncertainty surrounding the confrontation between Washington and Tehran.

US War Secretary Pete Hegseth said on Monday that Washington was “by no means” ruling out military action against Iran. He told reporters that “if we need to use kinetic strikes, we’ll use them,” while indicating that economic pressure remained the preferred approach.

His comments followed further warnings from Bessent as the US intensified its sanctions campaign against Tehran.

Bessent said “no one is above the reach of US sanctions,” raising the possibility that Chinese banks involved in purchases of Iranian oil could face measures. The US has also announced additional sectoral sanctions and an “Operation Economic Outcast” campaign, with Bessent warning that “the clock just started ticking.”

Iranian official Mohsen Rezaei responded by warning that Tehran could halt all Gulf oil exports if the “economic war” continued.

Geopolitical tensions have remained high since US and Israeli strikes reportedly killed Iran’s Supreme Leader on February 28. Iran subsequently retaliated and partially restricted traffic through the Strait of Hormuz. An April ceasefire reduced the intensity of the conflict, although periodic flare-ups have continued.

Oil Prices Fall Despite Middle East Risks

Energy prices moved lower despite the continuing geopolitical uncertainty. Brent crude fell 0.72% to $89.89 a barrel, while WTI declined 0.74% to $89.91.

Precious metals were also slightly weaker. Gold futures slipped 0.016% to $4,697.36, while spot gold declined 0.22% to $4,641.30.

UK Corporate Updates

Melrose (LSE:MRO) said GKN Aerospace is targeting September 28 for the restoration of full operations at its Garden Grove facility. The company has also launched a claims programme worth up to $100 million, while the Orange County District Attorney’s Office has decided not to pursue criminal charges relating to the incident.

Elsewhere, easyJet (LSE:EZJ) and Apollo (NYSE:APO) have extended the deadline for publishing the scheme document connected with their proposed transaction to October 15. The additional time will allow discussions with relevant aviation regulators to continue as the deal progresses through the approval process.

U.S. equity futures were little changed on Monday, pointing to a subdued start on Wall Street as investors remained cautious ahead of Nvidia’s (NASDAQ:NVDA) quarterly earnings and the Jackson Hole economic symposium.

Stocks recovered on Friday following the previous session’s sell-off, although the rebound was not enough to prevent the major indices from recording sizeable weekly declines.

Treasury Buyback Plans Ease Pressure on Bond Yields

Futures initially suggested a weaker opening before improving after CNBC reported further details about the U.S. Treasury Department’s plans to increase purchases of longer-dated government debt.

According to CNBC, citing two senior Treasury officials, the department could draw on its General Account, which holds close to $1 trillion, to help finance a planned doubling of its debt buyback programme.

The report pushed Treasury yields lower, with the benchmark 10-year yield retreating after two sessions of significant increases driven partly by concerns surrounding the U.S. government’s debt burden.

Lower yields provided some relief for equities, but investors appeared unwilling to take aggressive positions ahead of this week’s major market catalysts.

Nvidia Earnings Could Set the Tone for Technology Stocks

Nvidia’s (NASDAQ:NVDA) quarterly report is expected to command significant attention as investors assess whether the artificial intelligence boom can continue supporting earnings growth and elevated technology-sector valuations.

Monetary policy will also move into focus when Federal Reserve Chair Kevin Warsh delivers his keynote address at the Jackson Hole symposium on Friday.

“[Fed Chair Kevin] Warsh is scheduled to deliver keynote remarks on Friday, and markets will be looking for greater clarity on both his assessment of inflation and the broader “regime change” he has advocated at the Fed,” said Daniela Hathorn, Senior Market Analyst at Capital.com.

She added, “He has been reluctant to provide conventional forward guidance, meaning the speech may focus more heavily on the Fed’s reaction function and longer-term philosophy than explicitly signaling what policymakers will do in September.”

Investors will also receive closely watched U.S. consumer inflation data on Wednesday. With few major economic releases before then, trading could remain relatively restrained.

Dow Leads Friday’s Wall Street Recovery

Wall Street rebounded strongly on Friday after Thursday’s decline, with all three major indices ending the session higher.

The Dow advanced 517.80 points, or 1%, to 53,277.01. The Nasdaq gained 113.29 points, or 0.4%, to 26,180.45, while the S&P 500 rose 33.21 points, or 0.4%, to 7,674.37.

Even with Friday’s recovery, the Nasdaq finished the week down 2.1%, while the S&P 500 lost 1.4% and the Dow declined 0.9%.

Some of the rebound appeared to come from investors buying shares following Thursday’s sharp retreat, when rising bond yields and an extended rally in crude oil weighed on risk appetite.

Middle East Tensions Keep Oil Risks in Focus

U.S. crude futures were broadly unchanged after rising more than 6% over the week, with uncertainty surrounding the conflict in the Middle East continuing to support energy prices.

Concerns have increased as the Trump administration shifts towards more aggressive economic measures against Iran rather than further major U.S. military operations, raising the possibility that the confrontation could continue for an extended period.

A prolonged crisis could maintain upward pressure on energy prices and complicate the outlook for inflation and monetary policy.

“Next week’s results from Nvidia could put some of the focus back on corporate earnings but, as we head towards the autumn, a chill has started to descend for markets,” said Dan Coatsworth, head of markets at AJ Bell.

He added, “Investors will be looking for a comfort blanket when Federal Reserve chair Kevin Warsh addresses the Jackson Hole meeting at the end of this month.”

Gold and Brokerage Shares Outperform

Brokerage stocks were among Friday’s strongest performers, with the NYSE Arca Broker/Dealer Index climbing 3.7% to a record closing level.

Gold-related shares also benefited from a sharp increase in bullion prices, lifting the NYSE Arca Gold Bugs Index by 2.5% to its highest close in four months.

Airline, healthcare and pharmaceutical stocks also recorded substantial gains, while utility shares moved notably lower.

European equities traded broadly flat on Monday as investors held back from making major moves ahead of details on what Washington has described as its toughest sanctions campaign yet against Iran and countries that continue to trade with Tehran.

Geopolitical developments are sharing investors’ attention with a busy week of economic and corporate events. Nvidia (NASDAQ:NVDA) is due to report earnings, while upcoming U.S. inflation figures and Federal Reserve Chair Kevin Warsh’s speech at Jackson Hole could provide further direction for global markets.

Major European Indices Trade in Narrow Ranges

Price action across the region remained subdued, with the major European benchmarks showing only modest changes.

France’s CAC 40 slipped 0.2%, while Germany’s DAX hovered just above the flat line. In London, the FTSE 100 gained around 0.1%.

The limited moves reflected investor caution as markets waited to assess the scope of the expected U.S. sanctions and their potential implications for energy markets, inflation and the wider economic outlook.

GSK Gains After Japanese Hepatitis B Approval

Among individual stocks, GSK (LSE:GSK) moved modestly higher in London after securing the first global approval in Japan for its experimental treatment for chronic hepatitis B.

The regulatory milestone provided support for the pharmaceutical group’s shares as investors assessed the potential commercial importance of the treatment.

Elsewhere, French banking group BNP Paribas (EU:BNP) traded lower after confirming that it intends to proceed with an appeal related to the Sudan litigation.

Skanska Advances on Prague Data Centre Contract

Swedish construction group Skanska (TG:SKNB) moved higher after securing a contract from CRA Prague Gateway DC to construct a new data centre on the outskirts of Prague in Czechia.

The contract provided a company-specific catalyst for Skanska shares during an otherwise quiet European session.

With European markets showing little overall direction, attention is likely to remain centred on the forthcoming U.S. sanctions against Iran, Nvidia’s results, inflation data and Warsh’s Jackson Hole remarks for potential catalysts later in the week.