North American Morning Briefing: Stock Futures Up, Oil Slumps After Trump Calls Off Iran Attack

OPENING CALL

Stock futures were up Monday as oil prices tumbled after Trump held off fresh attacks on Iran and said the U.S. would engage in talks beginning Monday afternoon.

The prospect of another round of discussions about a cease-fire weighed on oil prices as investors hoped for an end to the disruption of shipping through the Strait of Hormuz.

"Markets are starting August with a rare dose of geopolitical relief, as Trump's decision to restart talks with Iran has knocked a large chunk out of the oil-risk premium and given bonds room to rally," Tickmill Group said.

The dollar fell on the renewed hopes for peace

and was also hit by the U.S.-Japanese joint intervention to strengthen the yen, the first joint move to shore up the currency since 1998.

Investors are now awaiting the ISM surveys for July on manufacturing due today, although the monthly jobs data for July due Friday will be the highlight of a busy week for economic data.

Recent jobs data have been weak and further evidence of this could cause investors to reduce rate-hike expectations even further.

Meanwhile, Palantir is scheduled to report its latest financial results after the closing bell.

Stocks to watch

AstraZeneca, Bristol Myers Squibb: The drug companies are in talks to combine in a deal that would value the joint company at roughly $400 billion, the Financial Times reported. Shares in AstraZeneca fell in London, while Bristol Myers Squibb shares jumped premarket in the U.S.

Marriott International and Tyson Foods are among the companies reporting earnings before the opening bell. Palantir Technologies will report after the close.

Watch For:

U.S. ISM Report on Business Manufacturing PMI for July; Canada financial markets closed for Civic Holiday

Today's Top Headlines/Must Reads:

- The Worries That Drove Uncle Sam to Buy Yen

- How to Play the Flood of AI Bonds

- Big Fashion Brands Try on a New Trend: Selling Secondhand Clothes

MARKET WRAPS

Forex:

The dollar fell, staying near a seven-week low reached overnight after President Trump said he cancelled a planned strike on Iran while Japan and the U.S. confirmed joint intervention to shore up the yen.

The euro declined. The currency should probably be stronger versus the dollar given recent solid eurozone data, lower oil prices and dollar selling from Japan as part of joint interventions with the U.S. to support the yen, ING said.

Bonds:

Treasury yields slid in early trade as oil prices fell on improved outlook for a solution in the Middle East.

Energy:

In early trading, front-month Brent crude was down 5%, while WTI futures dropped 6.1%.

Metals:

Gold prices edged higher after President Trump refrained from launching fresh attacks on Iran, sending oil prices lower and easing concerns about inflation and further interest-rate hikes.

Iron ore

Iron ore futures were lower in early trade. ANZ Research sees little prospect of reversing the structural decline in Chinese steel demand. It estimates that only targeted policy support focused on infrastructure and selective industrial measures can help the market.

   TODAY'S TOP HEADLINES 

Banco BPM Pulls Out of Merger Talks With Monte Paschi

Italian bank Banco BPM said it dropped out of talks to merge with peer Banca Monte dei Paschi di Siena, in a move that could clear the way for a rival $35 billion takeover offer from Intesa Sanpaolo.

BPM said Friday that conditions for reaching an agreement with Monte dei Paschi hadn't been met nearly two months after it sent its proposal, and that its board decided to discontinue discussions regarding a potential combination. The bank said it still saw strong potential strategic and industrial rationale for a tie-up, and that a deal would have generated significant value for both parties.

Atkore Agrees to Be Bought by Prysmian for $3.8 Billion, Including Debt

U.S.-listed Atkore said it agreed to be bought by Italy's Prysmian, in a deal that values the manufacturer of electrical infrastructure products at around $3.8 billion, including debt.

Under the deal, Atkore shareholders will receive $95 a share in cash. This is a roughly 30% premium to the stock's closing price of $72.96 on Friday.

TotalEnergies Sells Stake in European Renewable Assets to KKR

France's TotalEnergies said it agreed to sell a 50% stake in European onshore solar and wind assets to private-equity firm KKR, in a deal that values the portfolio at 1.8 billion euros, equivalent to $2.08 billion, including debt.

TotalEnergies said the stake was in a largely developed 1.2 gigawatt portfolio operating across Germany, Spain, France and Poland.

AstraZeneca Shares Drop, Bristol Myers Squibb's Climb After Merger Talks Reports

AstraZeneca shares fell sharply and Bristol Myers Squibb's climbed, after media reports that the two drugmakers held merger talks.

London-listed shares in AstraZeneca were down 6.4% in European morning trading. Meanwhile, Bristol's shares were up 5.5% in U.S. premarket trading.

The Worries That Drove Uncle Sam to Buy Yen

TOKYO-In carrying out their first joint effort in a generation to boost the yen, the U.S. and Japan are seeking to contain tremors that could be triggered by a cratering Japanese currency.

The yen's slide to a 40-year low indirectly threatened to bump up U.S. interest rates and risked throwing a wrench in plans to pull billions of dollars of Japanese investment into the U.S.

Summertime Blues Hit China's Factories

China's factories are showing new signs of weakness, risking a sharper slowdown in growth-though not enough, it appears, to push Beijing into delivering major new stimulus.

Manufacturing activity in China expanded at a slower pace in July than the month prior, according to a private gauge released Monday. That came after the government's official manufacturing purchasing managers index on Friday showed a contraction in activity in July for the first time in five months.

Swiss Inflation Falls Again Despite Oil-Price Rebound

Swiss inflation fell in July despite a rebound in global energy prices following a flare-up of conflict in the Middle East, which has driven up inflation in other parts of Europe.

The annual rate of inflation was 0.4%, down from 0.5% in June, Swiss data agency FSO said Monday. This marks the lowest rate of inflation since March.

Acting ICE Chief Divests Detention Stocks and Recuses From Contracts

WASHINGTON-Acting ICE Director David Venturella has divested of his Geo Group stocks and recused himself from "all contracts and obligations related to detention" and certain other matters that involve the private prison company, according to a letter sent to Sen. Elizabeth Warren (D., Mass.).

Venturella previously worked at Geo Group, one of the nation's largest private prison operators, before returning last year to the Department of Homeland Security, where he also worked during the Obama administration. Venturella worked for Geo Group from 2012 to 2023 and then was a consultant for the private prison company through Jan. 31, 2025, according to an SEC filing.

Blanche Formally Rescinds 'Anti-Weaponization' Fund in Bid to Smooth Confirmation

WASHINGTON-Acting Attorney General Todd Blanche said he formally rescinded a $1.8 billion "anti-weaponization fund" that became an impasse for two holdout Republican senators blocking his confirmation to the permanent position.

In a one-page order late Sunday, Blanche wrote that the fund "is rescinded and shall have no force or effect." A separate document released simultaneously by the Justice Department appeared to address another demand of the senators, that the government narrow the scope of tax audit protections for the president, his family and his businesses.

The Kremlin Is Bullying More Russians Into Fighting in Ukraine

Russia is strong-arming more fighting-age men into military service to boost the flagging ranks of its army as voluntary recruitment stalls and Moscow's initiative on the front line in Ukraine falters.

In Russia's smaller towns and cities, some military recruiters have resorted to detaining men on the street, outside their places of work or under the pretext of routine document checks, say lawyers, rights activists and eyewitnesses. Once in a military recruitment office, men may be threatened or beaten until they sign up for the war, they say.

High-Stakes Michigan Primary Tests Progressive Clout and the Democratic Direction

A divisive Democratic primary for Senate in Michigan on Tuesday, arguably the party's most consequential contest so far this year, will reveal whether a progressive and socialist groundswell has spread to America's heartland.

The race, in a state critical to the party's prospects for winning a Senate majority, has featured months of infighting over what the party stands for.

Write to priscila.barrera@wsj.com

TODAY IN CANADA

Earnings:

5N Plus Inc. 2Q

Economic Indicators (ET):

Canada: Civic Holiday, except Quebec. Financial markets closed

Stocks to Watch:

Bunker Hill Mining Ships First Concentrate to Teck Resources Trail Smelter and Announces Drawdown of Standby Facility

Champion Iron Price Target Cut 23% to A$3.40/Share by Bell Potter

Lexaria Bioscience Corp. Halted due to pending news

Max Power Mining Completed Strategic Transaction With Homeland Critical Minerals Corp.; Announces Closing of Sale of Arizona Lithium Asset

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August 03, 2026 06:13 ET (10:13 GMT)

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