investingLive European session wrap: Oil stumbles as markets cling on to US-Iran de-escalation hopes

<p>Headlines:</p><ul><li><a href="https://investinglive.com/news/market-update-today-and-what-may-be-interesting-to-trade" rel="follow">Market update today and what may be interesting to trade</a></li><li><a href="https://investinglive.com/commodities/oil-prices-fall-as-expectations-for-de-escalation-strengthen-after-the-us-halted-strikes-on-iran" rel="follow">Oil prices fall as expectations for de-escalation strengthen after the US halted strikes on Iran</a></li><li><a href="https://investinglive.com/news/a-case-of-us-iran-deja-vu-for-markets" rel="follow">A case of US-Iran déjà vu for markets?</a></li><li><a href="https://investinglive.com/stocks/big-tech-earnings-in-focus-in-wall-street-this-week" rel="follow">Big tech earnings in focus in Wall Street this week</a></li><li><a href="https://investinglive.com/central-banks/ecb-policymaker-zigman-says-september-decision-will-be-based-on-data-and-projections" rel="follow">ECB policymaker Žigman says September decision will be based on data and projections</a></li><li><a href="https://investinglive.com/central-banks/ecb-policymaker-kazimir-says-at-least-one-more-rate-hike-will-be-needed" rel="follow">ECB policymaker Kazimir says at least one more rate hike will be needed</a></li><li><a href="https://investinglive.com/news/japan-must-exit-excessively-tight-fiscal-policy-says-prime-minister-takaichi" rel="follow">Japan must exit excessively tight fiscal policy, says prime minister Takaichi</a></li><li><a href="https://investinglive.com/news/germany-july-ifo-business-climate-index-vs-86-0-expected" rel="follow">Germany business sentiment rises further and by more than expected in July - Ifo</a></li><li><a href="https://investinglive.com/news/uk-retailers-report-smallest-downturn-in-sales-in-six-months-during-july-cbi" rel="follow">UK retailers report smallest downturn in sales in six months during July - CBI</a></li></ul><p>Markets:</p><ul><li>WTI crude down 6.7% to $83.30, Brent crude down 7.5% to $89.45</li><li>European equities gain; S&P 500 futures up 0.9%</li><li>CHF leads, USD lags on the day</li><li>10-year Treasury yields down 4.5 bps to 4.63%</li><li>Gold up 1.1% to $4,097</li><li>Bitcoin up 0.7% to $65,090</li></ul><p></p><p class="text-align-justify" style="text-align: justify;">Markets are breathing a sigh of relief as the US and Iran put a pause on military strikes, giving hope for a potential path to resume nuclear talks. There's still no guarantee for now, but hopes for de-escalation are helping to provide some reprieve for broader markets to start the new week.</p><p class="text-align-justify" style="text-align: justify;">Despite the Strait of Hormuz still being closed, oil prices opened sharply lower with WTI crude down by nearly 7% to $83.30 on the day.</p><p class="text-align-justify" style="text-align: justify;">With that, broader markets are seeing a more consistent risk positive reaction with the US dollar falling alongside bond yields. EUR/USD is up 0.2% to 1.1390-00 with large expiries at 1.1400 keeping things in check for now. Meanwhile, USD/JPY is down 0.2% to 163.58 in buying a breather for Japan's ministry of finance. This comes 10-year Treasury yields fall by 4.5 bps to 4.63%.</p><p class="text-align-justify" style="text-align: justify;">In the equities space, European indices are cheering the risk optimism with the DAX leading gains in trading up by 1.6%. The CAC 40 is up 1.0% with it being all green on the screen for regional indices.</p><p class="text-align-justify" style="text-align: justify;">US futures are also benefiting from this with big tech earnings eyed later in the week. S&P 500 futures are up 0.9% with Nasdaq futures up 1.4% in eyeing a rebound from the drop on Friday.</p><p class="text-align-justify" style="text-align: justify;">Elsewhere, gold is seen up 1.1% to $4,097 with silver up 1.5% to $59 again as the back and forth dance continues for precious metals.</p><p class="text-align-justify" style="text-align: justify;">Looking ahead this week, there will be much to play for with major central bank decisions, US earnings, and month-end shenanigans all in the picture alongside US-Iran developments.</p><p class="text-align-justify" style="text-align: justify;"></p><p></p>

This article was written by Justin Low at investinglive.com.

This article was sourced from Forexlive. WealthWire aggregates financial news for informational purposes only. This does not constitute investment advice.