MARKET WRAPS
Stocks:
European shares were rising Tuesday, boosted by mining and AI-related stocks, while energy-intensive sectors weakened.
Oil prices were gaining, triggered by a stalemate between the U.S. and Iran around the terms of reopening the Strait of Hormuz, even as a growing number of tankers crossed the waterway.
The prices fuel market expectations of further interest-rate hikes by the Fed. Money markets currently price in 100 basis points of Fed rate hikes over a 12-month horizon, according to LSEG.
With these geopolitical pressures and uncertainties persisting, the dominant macroeconomic risk this week continues to be the Middle East conflict and its impact on energy markets, inflation expectations and the global rates outlook, First Abu Dhabi Bank said.
Economic Insight
Spanish inflation rose in September, climbing to its highest point since February 2023, accelerating past the eurozone average.
Meanwhile, the Netherlands and Italy line up for government bond sales in the eurozone on Tuesday.
In the U.K., investors are awaiting a speech by Prime Minister Andy Burnham at the Labour Party conference due at around 1300 GMT.
Markets hope Burnham will provide reassurance about the government's commitment to fiscal rules.
U.S. Markets:
Stock futures were mixed with the Dow tracking lower, while the Nasdaq tracked higher.
Trump is expected to meet with technology company CEOs at 12:30 p.m. ET.
Forex:
The euro gained against the Swiss franc.
The dollar appreciated as oil prices rose.
Bitcoin recovered only marginally after reaching a one-week low on Monday.
Bonds:
Yields on U.K. government bonds declined.
Treasury yields rose in Asia trade but remained slightly below the fresh multiyear peaks reached Monday.
Energy:
Oil prices rose as a lack of progress in U.S.-Iran talks outweighed signs of recovery in Gulf exports.
Metals:
Gold
Gold prices edged higher in early trading, while it's near-term bias remained downward, based on the daily chart.
Silver
Silver remained under pressure after Monday's selloff.
Copper
Copper fell in early European trading.
EMEA HEADLINES
Shell to Double Production Capacity at LNG Canada
British energy major Shell said it would double production capacity at its LNG Canada facility in British Columbia as it bets on growing gas demand in Asia.
Shell said Tuesday that it would build two additional liquefaction plants to double production capacity to 28 million metric tons a year.
Novo Inks Weight-Loss Licensing Deal With Hengrui Pharma
Novo Nordisk has signed a licensing deal for a weight-loss treatment being developed by Hengrui Pharma that could be worth up to $2.6 billion.
The Danish drugmaker will pay China-based Hengrui $300 million upfront, with the rest of the potential deal value tied to milestones.
Hapag-Lloyd Raises Guidance Again on Strong Demand, Freight Rates
Hapag-Lloyd raised its full-year earnings guidance again as it continues to see strong market demand and positive developments in spot freight rates.
The German shipping company said Tuesday that it now expects group earnings before interest, tax, depreciation and amortization between $3.9 billion and $4 billion, up from a previous estimate of $2.7 billion to $3.7 billion.
Legrand Shares Rise After Data-Center Boom Prompts Guidance Upgrade
Legrand shares climbed after the French supplier of electrical equipment raised its 2030 targets as it laid out plans to capitalize on the rapid data-center buildout driven by artificial intelligence.
Shares in Legrand were up 6.2% in European morning trading Tuesday, lifting their year-to-date gain to 12%.
GLOBAL NEWS
Japan Finance Minister Reaffirms U.S. Coordination on Yen Stability
TOKYO-Japan's finance minister reaffirmed that Tokyo is working closely with the U.S. to ensure stability in the foreign-exchange market, as expectations of hawkish shifts on both sides spur yen volatility.
"Generally speaking, we view the yen's undervaluation as problematic," Finance Minister Satsuki Katayama said at a news conference Tuesday. "We remain committed to maintaining order in the currency market."
Australia's Central Bank Raises Rates Again as Inflation Fears Materialize
SYDNEY-Australia's central bank delivered its fourth interest-rate hike of the year, bringing rates to a 15-year high as it joins peers in ratcheting up the fight against inflation.
The Reserve Bank of Australia voted unanimously to raise the official cash rate by 25 basis points to 4.60% on Tuesday, citing continued pressure on energy prices from the conflict in the Middle East.
Middle East Oil Exports Rebound as Iran's Chokehold on Hormuz Breaks Down
DUBAI-Iran's ability to choke off oil flowing through the Strait of Hormuz-and use that as leverage in talks with the U.S.-is breaking down, raising the risk it will resort to military escalation to bolster its position.
The erosion of Iran's position comes as the U.S. Navy and Gulf oil producers have become better at fending off or evading Iranian attacks, allowing more tankers to cross the strait.
RFK Jr.'s Push to Revamp American Food Runs Into White House Resistance
Health Secretary Robert F. Kennedy Jr.'s efforts to revamp America's food system have hit their biggest hurdle yet: the White House.
Two years ago, the Trump campaign joined forces with Kennedy, embracing his ambition to wage war on chronic disease. But concerns about whether his ideas on food are even feasible have prompted clashes within the administration, casting uncertainty over a once-potent political agenda that drew support from millions of voters.
Treasury Takes Aim at Tax-Avoiding Investment Strategies
The Treasury Department issued its first formal warning shot against some increasingly popular tax-reducing investment strategies, cautioning against "potentially abusive" moves designed to minimize tax bills.
The government moved Monday to limit one strategy involving exchange-traded funds and flagged several others as questionable. The actions followed officials' comments earlier this year expressing concern about the proliferation of tax-motivated investing techniques.
New York Prosecutor Reopens Investigation Into Cornell Rape Allegations
New York prosecutors have reopened an investigation into an alleged gang rape of a former Cornell University student after her lawyer filed a civil lawsuit earlier this month saying the school failed to protect her.
Tompkins County District Attorney Matthew Van Houten said Monday that his office would present the case against seven fraternity members to a grand jury for potential criminal charges in the alleged 2024 sexual assault.
Write to nina.kienle@wsj.com